Page:United States Statutes at Large Volume 92 Part 2.djvu/386

 92 STAT. 1666

PUBLIC LAW 95-497—OCT. 21, 1978 SEC. 2. REQUIREMENTS.

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(a) LIMITATIONS ON A M O U N T OF D E B T TO B E ACQUIRED.—

(1) PERCENTAGE LIMITATIONS.—An acquisition of city indebtedness by a participating pension plan does not meet the requirements of this section if— (A) AGGREGATE LIMIT ON ACQUISITIONS BY CITY P L A N S. — I n

the case of a city plan, the plan acquires any city indebtedness after June 30, 1979, and before the city plans meet the percentage limitation on holdings of city indebtedness applicable under this subparagraph for the 12-month period ending on the most recently preceding June 30. The percentage limitation on holdings of city indebtedness under this subparagraph is not met if the value of city indebtedness held by all city plans exceeds a percentage of the aggregate assets of all city plans equal to— (i) 40 percent for the 12-month period ending on June 30, 1979, ( i i) 36 percent for the 12-month period ending on June 30, 1980, (iii) 33 percent for the 12-month period ending on June 30, 1981, and (iv) 30 percent for the 12-month period ending on June 30, 1982.

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(B) L I M I T ON ACQUISITIONS BY EACH CITY P L A N. — I n the

case of a city plan, the plan acquires any city indebtedness which, when added to other city indebtedness held by such plan, would cause such holdings to exceed 50 percent of the assets of such plan a t the time of the acquisition. (C) L I M I T ON ACQUISITIONS BY STATE P L A N. — I n the case of

a State plan, the plan acquires any city indebtedness which, when added to other city indebtedness held by such plan, ' would cause such holdings to exceed 10 percent of the assets of such plan at the time of the acquisition. -•

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(D) DETERMINATIONS o r WHETHER THE PERCENTAGE LIMITATIONS H A V E B E E N MET. (i) AGGREGATE L I M I T. — For the p u r p o s e of determin-^

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ing whether the percentage limitation on holdings of city indebtedness under subparagraph (A) has been met for any 12-month period described in that subparagraph, the plan shall use the arithmetic mean (expressed as a percentage) of 4 fractions, the numerators of which are the value of city indebtedness held by all city plans as of the close of each calendar quarter within the 12-month period for which the determination is being made and the denominators of which are the value of the assets of all city plans as of the close of each such calendar quarter. I f the percentage limitation under subparagraph (A) is not met for a 12-month period on the basis of the 4 fractions for the 4 calendar quarters within that 12-month period, the plan shall make a redetermination for that 12-month period as of the close of the first calendar quarter, if necessary, the second calendar quarter and, if necessary, the t h i r d calendar quarter following the 12-month period using the 4 fractions for the 12-month

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