Page:United States Statutes at Large Volume 96 Part 2.djvu/1244

 96 STAT. 2606

PUBLIC LAW 97-473—JAN. 14, 1983 "(A) such periodic pa3aiients are fixed and determinable as to amount and time of payment, "(B) such periodic payments cannot be accelerated, deferred, increased, or decreased by the recipient of such payments, (C) the assignee does not provide to the recipient of such payments rights against the assignee which are greater than those of a general creditor, "(D) the assignee's obligation on account of the personal injuries or siclmess is no greater than the obligation of the person who assigned the liability, and "(E) such periodic payments are excludable from the gross income of the recipient under section 104(a)(2). "(d) QUALIFIED FUNDING ASSET.—For purposes of this section, the term 'quedified funding asset' means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if— "(1) such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment, "(2) the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic pa5ntnent to which it relates, "(3) such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with resjpect to such qualified assignment, and (4) such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days sifter the date of such assignment." (2) CONFORMING AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 is amended by striking out the item relating to section 130 and inserting in lieu thereof the following new items: "Sec. 130. Certain personal injury liability assignments. "Sec. 131. Cross references to other Acts.

26 USC 130 note.

Ante, p. 2605. 26 USC 132. 26 USC 131.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending after December 31, 1982. SEC. 102. EXCLUSION FROM GROSS INCOME FOR CERTAIN FOSTER CARE PAYMENTS. (a) IN GENERAL.—Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income), as amended by section 101(b), is amended by redesignating section 131 as section 132 and by inserting after section 130 the following new section: "SEC. 131. CERTAIN FOSTER CARE PAYMENTS. "(a) GENERAL RULE.—Gross income shall not include amounts received by a foster parent during the taxable year as qualified foster care payments. "(b) QUALIFIED FOSTER CARE PAYMENT DEFINED.—For purposes of

this section— "(1) IN GENERAL.—The term 'qualified foster care payment' means any amount—

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