Page:United States Statutes at Large Volume 92 Part 1.djvu/537

 PUBLIC LAW 95-345—AUG. 15, 1978

92 STAT. 483

under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer. "(b)

AGKEEMENT E K Q U I R E M E N T S. — I n order to meet the require-

ments of this subsection, a n agreement shall— " (1) provide for the return to the transferor of securities identical to the securities transferred; " (2) require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor; " (3) not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and " (4) meet such other requirements as the Secretary may by regulation prescribe. " (c) BASIS.—Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.". (2) CLERICAL AMENDMENT.—The table of sections for part IV

of subchapter O of chapter 1 of such Code is amended by striking 26 USC 1051 et out the last item and inserting in lieu thereof the following: "Sec. 1058. Transfers of securities under certain agreements. "Sec. 1059. Cross references.". (e) EFFECTIVE D A T E. — The amendments made by this section apply 26 USC 509 note, with respect to— (1) amounts received after December 31, 1976, as payments with respect to securities loans (as defined in section 512(a)(5) of the I n t e r n a l Revenue Code of 1954), and ^'««' P- ' ^ 1 (2) transfers of securities, under agreements described in section 1058 of such Code, occurring after such date. ^'»^. P- 482.

SEC. 3 USE OF COMPLETED CROP POOL METHOD OF ACCOUNTING. . Section 1382 of the I n t e r n a l Revenue Code of 1954 (relating to taxable income of cooperatives) is amended by a d d i n g at the end thereof the following new subsection:

26 USC 1382.

" (g) U S E o r COMPLETED CROP POOL METHOD o r ACCOUNTING.—

" (1) IN GENERAL.—An organization described in section 1381(a) which is engaged in pooling arrangements for the marketing of products may compute its taxable income with respect to any pool opened prior to March 1, 1978, under the completed crop pool method of accounting if— " (A) the organization has computed its taxable income under such method for the 10 taxable years ending with its first taxable year beginning after December 31, 1976, and " (B) with respect to the pool, the organization has entered into a n agreement with the United States or any of its agencies which includes provisions to the effect that— " (i) the United States or such agency shall provide a loan to the organization with the products comprising the pool serving as collateral for such loan, " ( i i) the organization shall use an amount equal to the proceeds of such loan to make price support advances to eligible producers (as determined by the United States or such agency), to defray costs of handling, processing, and storing such products, or to p a y all or part of any administrative costs associated with the price support program,

26 USC 1381.

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