Page:United States Statutes at Large Volume 90 Part 1.djvu/1561

 PUBLIC LAW 94-452—OCT. 2, 1976

90 STAT. 1511

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" (2) securities issued by or guaranteed as to principal or interest by a <>o\ernment or subdivision thereof or by any instrumentality of a goverjiment or subdivision, or " (3) money, and the right to receive money not evidenced by a security or obligation (other than a security or obligation described in paragraph (1) or (2)). " (e) BOARD.—For purposes of this part, the terra 'Board' means the Board of Governors of the Federal Reserve System, "'(f) CoNTKOi>: SUBSIDIARY.—For purposes of this part— " (1) CONTROL.—Except as provided in section 1 1 0 2 (c)(3), a corporation shall be treated as having control of another corporation if such corporation has control (within the meaning of section 2(a)(2) of the Bank Holding Company Act) of such 12 USC 1841. other corporation. " (2) SUBSIDIARY.—The term 'subsidiary' has the meaning given to such term by section 2(d) of the Bank H o l d i n g Company Act. " (g) FLECTIOX TO FOREGO GRANDFATHER PROVISION FOR A L L PROPERTY REPRESENTING P R E - J U N E 30, 1968, ACTIVITIES.—Any bank hold-

ing company may elect, for purposes of this part and section 6158, to Post, p. 1512. have the determination of whether property is property described in subsection (c) or is property eligible to be distributed without recognition of gain under section 1101(b)(1) made under the Baiik Holding Company Act as if such Act did not contain the proviso of section 4 (a)(2) thereof. Any election under this subsection shall appl.y to all Regulations. property described in such proviso and shall be made at such time and in such manner as the Secretary or his delegate nuiy by regulations prescribe. Any such election, once made, shall be irrevocable. A n election under this subsection or subsection (h) shall not apply unless the final certification referred to in section 1101(e) or section 6ir)8(c)(2), as the case may be, includes a certification by the Board that the bank holding company has disposed of either all banking property or all nonbanking property. " (h) ELECTION TO UIVEST A L L B A N K I N G OR XONBANKING PROPERTY IX CASE OF CERTAIN CLOSELY H E L D B A N K HOLDING C O M P A N I E S. — Any

pank holding company may elect, for purposes of this part and section 6158, to h a \ e the determination of whether property is property described in subsection (c) or is property eligible to be distributed without recognition of gain undei- section 1101(b)(1) made under the Bank Holding Company Act as if such Act did not contain clause (ii) of section 4(c) of such Act. Any election under this sul)section shall apply to all property described in subsection (c), or to all property eligible to be distributed without recognition of gain under section 1101 (b)(1), as the case may be. and shall be made at such time and in such nuinner as the Secretary or his delegate may by regulations prescribe. Any such election, once made, shall be irrevocable." (b) AMENDMENT OF SECTION 3 1 1 (d). — Paragraph

(2) of section

12 USC 1843.

26 USC 311.

311(d) of such Code (relating to exceptions and limitations to the recognition of gain where appreciated property is used to redeem stock) is amended by striking out " and " at the end of subparagraph (F). by striking out the period at the end of subparagraph (G) and inserting in lieu thereof "; and", and by adding at the end thereof the following new subparagraph: ' ' (H) a distribution of stock to a distributee which is not an organization exempt from tax under section 501(a), if with 26 USC 501. respect to such distributee, subsection (a)(1) or (b)(1) of section 1101 (relating to distributions ]>ursuant to Bank Holding Company Act) applies to such distribution."

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