Page:United States Statutes at Large Volume 92 Part 3.djvu/273

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2905

"(ii) none of the complete liquidations referred to in clause (i) is a liquidation with respect to which section 333 applies. "(B) DEFINITIONS.—For purposes of subparagraph (A)— "(i) The term 'distributee corporation' means a corporation in the chain of includible corporations to which the selling corporation or a corporation above the selling corporation in such chain makes a distribution in complete liquidation within the 12-month period referred to in subparagraph (A)(i). "(ii) The term 'chain of includible corporation' includes, in the case of any distribution, any corporation which (at the time of such distribution) is in a chain of includible corporations for purposes of section 1504(a) (determined without regard to the exceptions contained in section 1504(b)). Such term includes, where appropriate, the common parent corporation." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to sales or exchanges made pursuant to a plan of complete liquidation adopted after December 31, 1975. (j) CERTAIN TRANSACTIONS INVOLVING 2 OR MORE INVESTMENT COMPANIES.— (1) AMENDMENTS OF SECTION 368(a)(2)(F).—

26 USC 333.

26 USC 1504.

26 USC 337 note.

26 USC 368.

(A) The first sentence of clause (iii) of section 368(a)(2)(F) is amended— (i) by striking out "more than 50 percent" and inserting in lieu thereof "50 percent or more"; and (ii) by striking out "more than 80 percent" and inserting in lieu thereof "80 percent or more." (B) The first sentence of clause (vi) of section 368(a)(2)(F) is amended by striking out "is not diversified within the meaning" and inserting in lieu thereof "does not meet the requirements". (C) The second sentence of such clause (vi) is amended to read as follows: "If such investment company acquires stock of another corporation in a reorganization described in section 368(a)(1)(B), clause (i) shall be applied to the shareholders of such investment company as though they had exchanged with such other corporation all of their stock in such company for stock having a fair market value equal to the fair market value of their stock of such investment company immediately after the exchange." (D) Subparagraph (F) of section 368(a)(2) is amended by adding at the end thereof the following new clauses: "(vii) For purposes of clauses (ii) and (iii), the term 'securities' includes obligations of State and local governments, commodity futures contracts, shares of regulated investment companies and real estate investment trusts, and other investments constituting a security within the meaning of the Investment Company Act of 1940(15 U.S.C.80a-2(36)). "(viii) In applying paragraph (3) of section 267(b) in 26 USC 267. respect of any transaction to which this subparagraph applies, the reference to a personal holding company in such paragraph (3) shall be treated as including a reference to an investment company and the determination of whether a corporation is an investment company

39-194 O—80—pt. 3

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