Page:United States Statutes at Large Volume 96 Part 1.djvu/534

 96 STAT. 492

PUBLIC LAW 97-248—SEPT. 3, 1982 "(A) W H E R E SUBSECTION

(a)(1)

APPLIES.—In the case of

any acquisition of stock to which paragraph (1) (and not paragraph (2)) of subsection (a) of this section applies, the determination of the a m o u n t which is a dividend shall be made as if the property were distributed by the issuing corporation to the acquiring corporation and immediately thereafter distributed by the acquiring corporation." 26 USC 306.

(b) APPLICATION OF SECTION 306 TO CERTAIN STOCK ACQUIRED IN SECTION 351 EXCHANGES.—Subsection (c) of section 306 (defining

section 306 stock) is amended by adding a t the end thereof the following new paragraph: "(3) CERTAIN STOCK ACQUIRED IN SECTION 351 E X C H A N G E. — The

26 USC 304 note.

term 'section 306 stock' also includes any stock which is not common stock acquired in a n exchange to which section 351 applied if receipt of money (in lieu of the stock) would have been treated as a dividend to any extent. In the case of such stock, rules similar to the rules of section 304(b)(2) shall apply for purposes of this section." (c) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to transfers occurring after August 31, 1982, in taxable years ending after such date. (2) APPROVAL BY FEDERAL RESERVE BOARD.—The amendments

made by this section shall not apply to transfers pursuant to a n application to form a BHC filed with the Federal Reserve Board before August 16, 1982, if the BHC was formed not later than the later of— (A) the 90th day after the date of the last required approval of any regulatory authority to form such BHC, or (B) January 1, 1983. For purposes of this paragraph, the term " B H C " means a bank holding company (within the m e a n i n g of section 2(a) of the Bank Holding Company Act of 1956).

12 USC 1841. SEC.

227. APPLICATION OF.ATTRIBUTION RULES FOR PURPOSES OF SECTIONS 306 AND 356(a)(2).

(a) APPLICATION FOR P U R P O S E S OF SECTION 306.—Subsection (c) of

26 USC 306.

section 306 is amended by adding a t the e n d thereof the following new paragraph: "(4) APPLICATION OF ATTRIBUTION RULES FOR CERTAIN PUR-

POSES.—For purposes of paragraph s (l)(B)(ii) and (3), section 318(a) shall apply. For purposes of applying the preceding sentence to paragraph (3), sections 318(a)(2)(C) and 318(a)(3)(C) shall be applied without regard to the 50 percent limitation contained therein." (b) APPLICATION FOR PURPOSES OF SECTION 356(a)(2).—Paragraph

26 USC 356.

(2) of section 356(a) (relating to t r e a t m e n t as dividend) is amended by inserting "(determined with the application of section 318(a)'" after "distribution of a dividend" (c) EFFECTIVE D A T E S. —

26 USC 306 note. 26 USC 356 note.

(1) shall years (2) shall years

SECTION 306.—The amendment made by subsection (a) apply to stock received after August 31, 1982, in taxable ending after such date. SECTION 356.—The amendment made by subsection (b) applv to distributions after August 31, 1982, in taxable ending after such date.

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