Page:United States Statutes at Large Volume 96 Part 1.djvu/638

 96 STAT. 596

PUBLIC LAW 97-248—SEPT. 3, 1982 obligation will be subject to limitations under the United States income tax laws. "(c)(1) For purposes of subsection (a), a book entry obligation shall be treated as in registered form if the right to principal of, and stated interest on, such obligation may be transferred only through a book entry consistent with regulations prescribed by the Secretary of the Treasury. "(2) The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out the purpose of subsection (a) where there is a nominee or chain of nominees.". (b) OTHER OBLIGATIONS.— (1) OBLIGATIONS MUST BE IN REGISTERED FORM TO BE TAX-

95 Stat. 350.

EXEMPT.—Section 103 (relating to interest on certain governmental obligations) is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: "(j) OBLIGATIONS MUST B E IN REGISTERED FORM TO B E TAXEXEMPT.—

"(1) IN GENERAL.—Nothing in subsection (a) or in any other provision of law shall be construed to provide an exemption from Federal income tax for interest on any registrationrequired obligation unless the obligation is in registered form. "(2) REGISTRATION-REQUIRED OBLIGATION.—The term 'registration-required obligation* means any obligation other than an obligation which— "(A) is not of a type offered to the public, "(B) has a maturity (at issue) of not more than 1 year, or "(C) is described in section 163(f)(2)(B). "(3) SPECIAL RULES.— "(A) BOOK ENTRIES PERMITTED.—For

purposes of paragraph (1), a book entry obligation shall be treated as in registered form if the right to the principal of, and stated interest on, such obligation may be transferred only through a book entry consistent with regulations prescribed by the Secretary. "(B) NOMINEES.—The Secretary shall prescribe such regulations as may be necessary to carry out the purpose of paragraph (1) where there is a nominee or chain of nominees."

(2) DENIAL OF DEDUCTION FOR INTEREST IF OBLIGATION NOT IN

Ante, p. 498.

REGISTERED FORM.—Section 163 (relating to deduction for interest) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: "(f) DENIAL OF DEDUCTION FOR INTEREST ON CERTAIN OBLIGATIONS NOT IN REGISTERED FORM.—

"(1) IN GENERAL.—Nothing in subsection (a) or in any other provision of law shall be construed to provide a deduction for interest on any registration-required obligation unless such obligation is in registered form. "(2)

REGISTRATION-REQUIRED OBLIGATION.—For purposes

of

this section— "(A) IN GENERAL.—The term 'registration-required obligation' means any obligation (including any obligation issued by a governmental entity) other than an obligation which— "(i) is issued by a natural person, "(ii) is not of a type offered to the public,

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