Page:United States Statutes at Large Volume 92 Part 2.djvu/387

 PUBLIC LAW 95-497—OCT. 21, 1978



92 STAT. 1667

period and the fraction or fractions for the additional quarter or quarters. If the value of city indebtedness or plan assets is not available for any quarter at the time the determination of the fraction for that quarter is being made, the plan shall use a value derived from interpolations from the most recently available semi-annual valuations. (ii)

PLAN LIMIT.—In making a determination of

whether or not an acquisition of city indebtedness meets the requirements of subparagraph (B) or (C), the plan shall make determinations based on the most current data available as to the holdings of city indebtedness and on the basis of the most recently available semiannual valuation of assets of the plan. (2) METHOD or VALUATION.—For purposes of this subsection— (A) city indebtedness is to be valued by the plan at its face value, and (B) all other assets are to be valued by the plan under methods determined by the Secretary to be consistent with the methods of valuing assets for purposes of section 412 of the Internal Revenue Code of 1954. 26 USC 412. (b) STANDARDS.— (1) OVERALL STANDARD.—The

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overall standard used by the Secretary under this Act in determining whether or not to disapprove an agreement for the acquisition of city indebtedness under section 1(c) shall be the extent to which the acquisition of city indebtedness under the agreement will, in the case of a city plan— (A) maintain the ability of the city— (i) to make future contributions to the plan or trust, and (ii) to satisfy its future obligations to pay pension and retirement benefits to members and beneficiaries of such plan or trust, and (B) protect the sources of funds to provide retirement benefits for members and beneficiaries of the plan or trust. (2) FACTORS TO BE TAKEN INTO ACCOUNT.—In determining whether or not to disapprove such an agreement the Secretary shall take into account (among other factors) the terms of the obligations which are to be acquired under the agreement, (3) FISCAL PARTICIPATION BY PRIVATE SOURCES OR PUBLIC CREDIT

MARKETS.—The Secretary shall disapprove any such agreement unless he has received assurances to his satisfaction that there will be significant participation in the acquisition of city indebtedness by the State, an agency of the State, or private sources, or through public credit markets. (c) REQUIREMENTS W I T H RESPECT TO FISCAL CONDITION or THE CITY.— (1) SUBSTANTIAL PROGRESS TOWARD A BALANCED BUDGET BY 19 S 2.—

An acquisition of city indebtedness by a participating pension plan during any fiscal year beginning after June 30, 1979, does not meet the requirements of this section unless the Secretary has

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