Page:United States Statutes at Large Volume 95.djvu/281

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 255

SEC. 242. LIMITATIONS ON CARRYOVERS OF FINANCIAL INSTITUTIONS. Section 382(b)(7) (relating to reduction of net operating loss carryovers in title 11 or similar cases), as added by section 2(d) of Public Law 96-589, is amended to read as follows: 94 Stat. 3396. "(7) SPECIAL RULE FOR REORGANIZATIONS IN TITLE i i OR SIMILAR

CASES.—For purposes of this subsection— "(A) a creditor who receives stock in a reorganization in a title 11 or similar case (within the meaning of section 368(a)(3)(A)) shall be treated as a stockholder immediately before the reorganization, and "(B) in a transaction qualifying under section 368(a)(3)(D)(ii)— Ante, p. 254. "(i) a depositor in the transferor shall be treated as a stockholder immediately before the reorganization of the loss corporation, "(ii) deposits in the transferor which become, as a result of the transfer, deposits in the transferee shall be treated as stock of the acquiring corporation owned as a result of owning stock of the loss corporation, and "(iii) the fair market value of the outstanding stock of the acquiring corporation shall include the amount of deposits in the acquiring corporation immediately after the reorganization." SEC. 243. RESERVES FOR LOSSES ON LOANS. Paragraph (1) of section 593(e) (relating to distributions to share- 26 USC 593. holders of a domestic building and loan association) is amended by striking out "applies." in the last sentence thereof and substituting therefor the following: "applies, or to any distribution to the Feder^ Savings and Loan Insurance Corporation in redemption of an interest in an association, if such interest was originally received by the Federal Savings and Loan Insurance Corporation in exchange for financial assistance pursuant to section 406(f) of the National Housing Act (12 U.S.C. sec. 1729(f))." SEC. 244. FSLIC FINANCIAL ASSISTANCE. (a) IN GENERAL.—Part II of subchapter H of subtitle A of chapter 1 is amended by adding at the end thereof the following new section: "SEC. 597. FSLIC FINANCIAL ASSISTANCE. 26 USC 597. "(a) EXCLUSION FROM GROSS INCOME.—Gross income of a domestic building and loan association does not include any amount of money or other property received from the Federal Savings and Loan Insurance Corporation pursuant to section 406(f) of the National Housing Act (12 U.S.C. sec. 1729(f)), regardless of whether any note or other instrument is issued in exchange therefor. "(b) No REDUCTION IN BASIS OP ASSETS.—NO reduction in the basis of assets of a domestic building and loan association shall be made on account of money or other property received under the circumstances referred to in subsection (a)." (b) CLERICAL AMENDMENT.—The table of sections for part 11 of subchapter H of chapter 1 is amended by inserting after the item relating to section 596 the following: "Sec. 597. FSLIC financial assistance." SEC. 245. MUTUAL SAVINGS BANKS WITH CAPITAL STOCK.

(a) IN GENERAL.—Section 591 (relating to dividends paid on depos- 26 USC 59i. its) is amended—

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