Page:United States Statutes at Large Volume 92 Part 2.djvu/389

 PUBLIC LAW 95-497—OCT. 21, 1978 5>

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92 STAT. 1669

(A) includes a n analysis of compliance by the plan throughout the fiscal year with the requirements of subparagraph s (A) and (B) of subsection (a)(1), (B) is prepared in accordance with generally accepted accounting principles, and (C) meets the requirements of paragraph (3) of section 103(a) of the Employee Retirement Income Security Act of 1974, as in effect on the date of enactment of this Act 29 USC 1023. (without regard to the last 4 sentences of subparagraph (A) of that paragraph). (3) RULES FOR DETERMINING CASH FLOW.—For purposes of p a r a -

g r a p h (1)(B), the cash flow— (A) shall take into account contributions and other income (such as dividends and interest) on the one h and and the payment of benefits and expenses on the other hand, and (B) shall not take into account items properly chargeable to capital account (such as the proceeds from the sale or redemption of assets), other than— (i) payment of principal during the period a debt is outstanding, (ii) payment of principal at maturity or redemption, and (iii) proceeds from the sale of obligations having a m a t u r i t y of one year or less a t the time of sale, (f) C I T Y M U S T COMPLY W I T H REQUIREMENTS OF SECTION 103(7) OF N E W YORK C I T Y LOAN GUARANTEE ACT OF 1978.—An acquisition

Ante, p. 461.

of city indebtedness by a city pension plan for any plan year does not meet the requirements of this section unless, at the time of the acquisition, the Secretary has determined that the requirements of paragraph (7) of section 103 of the New York City Loan Guarantee Act of 1978, as in effect on the date of enactment of this Act, have been met. SEC. 3. NOTIFICATION OF PLANS AND CITY OF ACQUISITIONS WHICH FAIL TO MEET REQUIREMENTS OF THE ACT; REGULATIONS. (a) NOTIFICATION OF P L A N S AND C I T Y. — (1) NOTICE OF FAILURE TO MEET REQUIREMENTS.—Whenever the

Secretary determines that an acquisition of city indebtedness has not met one of the requirements of section 2, he shall notify the participating plan or plans involved. (2) NOTICE OF POSSIBLE PROSPECTIVE FAILURE.—The Secretary

shall notify each participating pension plan and the city whenever he finds, based on information available to the Secretary, that a future acquisition of city indebtedness will fail to meet the requirements of section 2 because of the requirement of subsection (a) (l)(A) o r (c) o f that section, and he shall notify the participating pension plan concerned and the city whenever it appears that a future acquisition of city indebtedness by that plan will fail to meet the requirements of section 2 for any other reason. (b) REGULATIONS.—The Secretary of the Treasury or his delegate is Regulations, authorized to prescribe such regulations as may be necessary to carry out the provisions of this Act. SEC. 4. DEFINITIONS AND SPECIAL RULES. For purposes of this Act— (1)

PARTICIPATING PENSION P L A N. — The term

pension p l a n " means any city plan or State plan^

"participating

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