Page:United States Statutes at Large Volume 94 Part 1.djvu/249

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 199

(I) DATE FOR ESTABLISHING PLAN.—

(i) Paragraph (1) of section 409A(f) (relating to plan 26 USC 409A. must be established before employer's due date) is amended to read as follows: "(1) IN GENERAL.—A plan meets the requirements of this subsection only if it is established on or before the due date (including any extension of such date) for the filing of the employer s tax return for the first taxable year of the employer for which an employee plan credit is claimed by the employer with respect to the plan." (ii) Paragraph (2) of section 409A(f) is amended by inserting before the period at the end thereof the following: "with respect to the plan". (J) DEFINITION OF EMPLOYER SECURITIES.—

(i) Subparagraph (B) of section 409A(1)(2) (relating to special rule where there is no readily tradable common stock) is amended by striking out "class of stock" and inserting in lieu thereof "class of common stock". (ii) Paragraph (3) of section 409 A(l) is amended to read as follows: "(3) PREFERRED STOCK MAY BE ISSUED IN CERTAIN CASES.—

Noncallable preferred stock shall be treated as employer securities if such stock is convertible at any time into stock which meets the requirements of paragraph (1) or (2) (whichever is applicable) and if such conversion is at a conversion price which (as of the date of the acquisition by the ESOP) is reasonable. For purposes of the preceding sentence, under regulations prescribed by the Secretary, preferred stock shall be treated as noncallable if after the call there will be a reasonable opportunity for a conversion which meets the requirements of the preceding sentence." (K) VOTING RIGHTS REQUIREMENTS.—Paragraph (7) of section 4975(e) (defining leveraged employee stock ownership 26 USC 4975. plan) is amended by striking out the last sentence and inserting in lieu thereof the following: "A plan shall not be treated as an employee stock ownership plan unless it meets the requirements of section 409A(h) and, if the employer has a registration-type class of securities (as defined in section 409A(e)(4)), it meets the requirements of section 409A(e)." (L) NAME CHANGES.—

(i) The following provisions are each amended by striking out "an ESOP" each place it appears (other than in any heading) and inserting in lieu thereof "a tax credit employee stock ownership plan": (I) Section 48(n)( 1)(A)(i). (II) Section 48(n)(2). (III) Section 48(n)(2)(A). (IV) Section 48(n)(5). (V) Section 401(a)(21). (VI) Section 409A(m). (VII) Section 415(c)(6)(B)(i). (VIII) The last sentence of section 1504(a). (ii) The following provisions are each amended by striking out "ESOP" each place it appears and inserting in lieu thereof "tax credit employee stock ownership plan": (I) Section 409A(a) (other than in the subsection heading). (II) Section 409A(1)(3).

26 USC 48.

26 USC 401. 26 USC 409A. 26 USC 415. 26 USC 1504.

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