Page:United States Statutes at Large Volume 96 Part 1.djvu/623

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 581

building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or similar organization, in respect of deposits, investment certificates, or withdrawable or repurchasable shares, "(D) interest on amounts held by an insurance company under an agreement to pay interest thereon, "(E) interest on deposits with brokers (as defined in section 6045(c)), and Post, p. 600. "(F) interest paid on amounts held by investment companies (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3)) and on amounts invested in other pooled funds or trusts. '(2) EXCEPTIONS.—The term 'interest' does not include— "(A) interest on any obligation issued by a natural person, "(B) interest on any obligation if such interest is exempt from taxation under section 103(a) or if such interest is exempt from tax (without regard to the identity of the holder) under any other provision of law, "(C) any amount paid on a depository institution taxexempt certificate (as defined in section 128(c)(1) (as in 95 Stat. 267. effect for taxable years beginning before January 1, 1985)), "(D) any amount which is subject to withholding under subchapter A of chapter 3 (relating to withholding of tax on nonresident aliens and foreign corporations) by the person paying such amount, "(E) any amount which would be subject to withholding under subchapter A of chapter 3 by the person paying such amount but for the fact that— "(i) such amount is income from sources outside the United States, "(ii) the payor thereof is excepted from the application of section 1441(a) by reason of section 1441(c) or a tax treaty, or "(iii) such amount is original issue discount (within the meaning of section 1232(b)(1)), "(F) any amount which is exempt from tax under— "(i) section 892 (relating to income of foreign governments and of international organizations), or "(ii) section 895 (relating to income derived by a foreign central bank of issue from obligations of the United States or from bank deposits), "(G) except to the extent otherwise provided in regulations, any amount paid by— "(i) a foreign government or international organization or any agency or instrumentality thereof, "(ii) a foreign central bank of issue, "(iii) a foreign corporation not engaged in trade or business in the United States, "(iv) a foreign corporation, the interest payments of which would be exempt from withholding under subchapter A of chapter 3 if paid to a person who is not a United States person, or "(v) a partnership not engaged in a trade or business in the United States and composed in whole of nonresident aliens, individuals and persons described in clause (i), (ii), or (iii).

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