Page:United States Statutes at Large Volume 94 Part 1.djvu/1271

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1221

"(2) If the purchaser— "(A) withdraws before the last day of the fifth plan year beginning after the sale, and "(B) fails to make any withdrawal liability payment when due, then the seller shall pay to the plan an amount equal to the payment that would have been due from the seller but for this section. "(3)(A) If all, or substantially all, of the seller's assets are distributed, or if the seller is liquidated before the end of the 5 plan year period described in paragraph (I)(C), then the seller shall provide a bond or amount in escrow equal to the present value of the withdrawal liability the seller would have had but for this subsection. "(B) If only a portion of the seller's assets are distributed during such period, then a bond or escrow shall be required, in accordance with regulations prescribed by the corporation, in a manner consistent with subparagraph (A). "(4) The liability of the party furnishing a bond or escrow under this subsection shall be reduced, upon payment of the bond or escrow to the plan, by the amount thereof. "(b)(1) For the purposes of this part, the liability of the purchaser shall be determined as if the purchaser had been required to contribute to the plan in the year of the sale and the 4 plan years preceding the sale the amount the seller was required to contribute for such operations for such 5 plan years. "(2) If the plan is in reorganization in the plan year in which the sale of assets occurs, the purchaser shall furnish a bond or escrow in an amount equal to 200 percent of the amount described in subsection (a)(l)(B). "(c) The corporation may by regulation vary the standards in subparagraphs (B) and (C) of subsection (a)(1) if the variance would more effectively or equitably carr3r out the purposes of this title. Before it promulgates such regulations, the corporation may grant individual or class variances or exemptions from the requirements of such subparagraphs if the particular case warrants it. Before granting such an individual or class variance or exemption, the corporation— "(1) shall publish notice in the Federal Register of the pendency of the variance or exemption, "(2) shall require that adequate notice be given to interested persons, and "(3) shall afford interested persons an opportunity to present their views. "(d) For purposes of this section, the term 'unrelated party' means a purchaser or seller who does not bear a relationship to the seller or purchaser, as the case may be, that is described in section 267(b) of the Internal Revenue Code of 1954, or that is described in regulations prescribed by the corporation applying principles similar to the principles of such section.

Distribution or liquidation.

Purchaser liability.

Individual or class variances.

Publication in Federal Register.

"Unrelated party." 26 USC 267.

PARTIAL WITHDRAWALS

"SEC. 4205. (a) Except as otherwise provided in this section, there is a partial withdrawal by an employer from a plan on the last day of a plan year if for such plan year— "(1) there is a 70-percent contribution decline, or "(2) there is a partial cessation of the employer's contribution obligation. "0)) For purposes of subsection (a)—

29 USC 1385.

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