Page:United States Statutes at Large Volume 95.djvu/324

 95 STAT. 298

26 USC 409A.

26 USC 409A "°*^-

26 USC 401.

26 USC 401 "°*®'

PUBLIC LAW 97-34—AUG. 13, 1981 "(3) SPECIAL RULE FOR BANKS.—In the case of a plan established and maintained by a bank (as defined in section 581) which is prohibited by law from redeeming or purchasing its own securities, the requirements of paragraph (1)(B) shall not apply if the plan provides that participants entitled to a distribution from the plan shall have a right to receive a distribution in cash, "(4) P U T OPTION PERIOD.—An employer shall be deemed to satisfy the requirements of paragraph (1)(B) if it provides a put option for a period of at least 60 days following the date of distribution of stock of the employer and, if the put option is not exercised within such 60-day period, for an additional period of at least 60 days in the following plan year (as provided in regulations promulgated by the Secretary). SEC. 337. DISTRIBUTION OF EMPLOYER SECURITIES FROM A TAX CREDIT EMPLOYEE STOCK OWNERSHIP PLAN IN THE CASE OF A SALE OF EMPLOYER ASSETS OR STOCK. (a) IN GENERAL.—Section 409A(d) (relating to distribution of employer securities) is amended by striking out the last sentence thereof and inserting in lieu thereof the following: "To the extent provided in the plan, the preceding sentence shall not apply in the case of— "(1) death, disability, or separation from service; "(2) a transfer of a participant to the employment of an acquiring employer from the employment of the selling corporation in the case of— "(A) a sale to the acquiring employer of substantially all of the assets used by the selling corporation in a trade or business conducted by the selling corporation, or "(B) the sale of substantially all of the stock of a subsidiary of the employer, or "(3) with respect to the stock of a selling corporation, a disposition of such selling corporation's interest in a subsidiary when the participant continues employment with such subsidiary." (b) EFFECTIVE DATE.—The amendments made by this section shall apply to distributions described in section 409A(d) of the Internal Revenue Code of 1954 (or any corresponding provision of prior law) made after March 29, 1975. SEC. 338. PASS THROUGH OF VOTING RIGHTS ON EMPLOYER SECURITIES. (a) IN GENERAL.—Paragraph (22) of section 401(a) (relating to qualified pension, profit-sharing, and stock bonus plans) is amended to read as follows: "(22) if a defined contribution plan (other than a profit-sharing plan)— "(A) is established by an employer whose stock is not publicly traded, and "(B) after acquiring securities of the employer, more than 10 percent of the total assets of the plan are securities of the employer, any trust forming part of such plan shall not constitute a qualified trust under this section unless the plan meets the requirements of subsection (e) of section 409 A." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to acquisitions of securities after December 31, 1979.

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