Page:United States Statutes at Large Volume 90 Part 1.djvu/1557

 PUBLIC LAW 94-452—OCT. 2, 1976

90 STAT. 1507

" (D) any property acquired by the distributing corporation in a transaction in which gain was not recognized under section 354 or 356 with respect to a reorganization described in 26 USC 354, section 3 6 8 (a)(1)(A) or (B), unless such property was 356. acquired by the distributing corporation in exchange for prop- 26 USC 368. erty which the distributing corporation could have distributed under subsection (a)(1) or (b)(1). "(2)

EXCHANGES INVOLVING PROHIBITED PROPERTY.—If—

" (A) any qualified bank holding corporation exchanges (i) property, which, under subsection (a)(1), such corporation could distribute directly to its shareholders or security holders without the recognition of gain to such shareholders or security holders, and other property (except property described in subsection (b)(1)(B)(i)), for (ii) all of the stock of a second corporation created and availed of solely for the purpose of receiving such property, " (B) immediately after the exchange, the qualified bank holding corporation distributes all of such stock in a manner prescribed in subsection (a)(2)(A), and " (C) before such distribution, the I3oard has certified (with respect to the property exchanged which consists of property which, under subsection (a)(1), such corporation could distribute directly to its shareholders or security holders without the recognition of gain) that the exchange and distribution are necessary or appropriate to effectuate section 4 of the B a n k H o l d i n g Company Act, 12 USC 1843. then paragraph (1) shall not apply with respect to such distribution. " (3)

EXCHANGES INVOLVING INTERESTS I N B A N K S. — I f —

" (A) any qualified bank holding corporation exchanges (i) property which, under subsection (b)(1), such corporation could distribute directly to its shareholders or security holders without the recognition of gain to such shareholders or security holders, and other property (except prohibited property), for (ii) all of the stock of a second corporation created and availed of solely for the purpose of receiving such property. " (B) immediately after the exchange, the qualified bank holding corporation distributes all of such stock in a manner prescribed in subsection (b)(2)(A), and " (C) before such distribution, the Board has certified (with respect to the property exchanged which consists of property which, under subsection (b)(1), such corporation could distribute directly to its shareholders or security holders w i t h o u t the r e c o g n i t i o n o f gain) 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 property 12 USC 1841. 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 subsection (b)(1) or exchanged under this paragraph, and " ( i i) the exchange and distribution are necessary or a p p r o p r i a t e to effectuate the policies of such Act, then paragraph (1) shall not apply with respect to such distribution.

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