Page:United States Statutes at Large Volume 90 Part 1.djvu/1555

 v /

PUBLIC LAW 94-452—OCT. 2, 1976

90 STAT. 1505

" (4) EXCEPTION.—This subsection shall not apply to any distribution by a corporation if such corporation, a corporation having control of such corporation, or a subsidiary of such corporation has made any distribution pursuant to subsection (b) or has made an election under section 6158 w i t h respect to bank Post, p. 1512. property (as defined in section 6158(f)(3)). "(5)

DISTRIBUTIONS INVOLVING GIFT OR COMPENSATION.—In

the

case of a distribution to which paragraph (1) or (2) applies but which— " (A) results in a gift, see section 2501 and following, or 26 USC 2501. " (B) has the effect of the payment of compensation, see section 61. 26 USC 61. "(b)

CORPORATION CEASING To B E A B A N K HOLDING C O M P A N Y. — " (1) DISTRIBUTIONS OF PROPERTY W H I C H CAUSE A CORPORATION TO BE A BANK HOLDING COMPANY. I F

" (A) a qualified bank holding corporation distributes property (other than stock received in an exchange to which subsection (c)(3) applies) — " (i) to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation, or " ( i i) to a shareholder, in exchange for its preferred stock, or " (iii) to a security holder, in exchange for its securities, and " (B) the Board has, before the distribution, certified that— " (i) such property is all or part of the property by reason of which such corporation controls (within the meaning of section 2(a) of the Bank H o l d i n g Company Act) a bank or bank holding company, or such 12 USC 1841. property is part of the property by reason of which such corporation did control a bank or a bank holding company before any property of the same kind was distributed under this subsection or exchanged under subsection (c)(3), and " ( i i) the distribution is necessary or a p p r o p r i a t e to effectuate the policies of such Act, '?* i i i then no gain to the shareholder or security holder from the receipt of such property shall be recognized. "(2) DISTRIBUTIONS or STOCK AND SECURITIES RECEIVED I N AN EXCHANGE TO W H I C H SUBSECTION (c)(s) APPLIES. I f

" (A) a qualified bank holding corporation distributes— " (i) common stock received in an exchange to which subsection (c)(3) applies to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation, or " ( i i) common stock received in an exchange to which subsection (c)(3) applies to a shareholder in exchange for its common stock, or " ( i i i) preferred stock or common stock received in an exchange to which subsection (c)(3) applies to a shareholder, in exchange for its preferred stock, or " (iv) securities or preferred or common stock received in an exchange to which subsection (c)(3) applies to a security holder, in exchange for its securities, and



�