Page:United States Statutes at Large Volume 98 Part 1.djvu/661

 PUBLIC LAW 98-369—JULY 18, 1984 (1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply with respect to agreements entered into after June 8, 1984. (2) EXCEPTIONS.—The amendments made by this section shall not apply— (A) to any agreement entered into pursuant to a written agreement which was binding on June 8, 1984, and at all times thereafter, .-,., (B) subject to the provisions of paragraph (3), to any agreement to lease property if— (i) there was in effect a firm plan, evidenced by a board of directors' resolution, memorandum of agreement, or letter of intent on March 15, 1984, to enter 0; into such an agreement, and ff (ii) construction of the property was commenced (but i:i such property was not placed in service) on or before Ml March 15, 1984, and -cal a (C) to any agreement to lease property if— (i) the lessee of such property adopted a firm plan to lease the property, evidenced by a resolution of the Finance Committee of the Board of Directors of such lessee, on February 10, 1984, (ii) the sum of the present values of the rents payable , by the lessee under the lease at the inception thereof equals at least $91,223,034, assuming for purposes of this clause— (I) the annual discount rate is 12.6 percent, (II) the initial payment of rent occurs 12 months after the commencement of the lease, and (III) subsequent payments of rents occur on the anniversary date of the initial payment, and (iii) during— (I) the first 5 years of the lease, at least 9 percent of the rents payable by the lessee under the agreement are paid, and (II) the second 5 years of the lease, at least 16.25 percent of the rents payable by the lessee under the agreement are paid. ,v,r nParagraph (3)(B)(ii)(II) shall apply for purposes of clauses (ii) and (iii) of subparagraph (C), as if, as of the beginning of the last stage, the separate agreements were treated as 1 single agreement relating to all property covered by the agreements, including any property placed in service before the property to which the agreement for the last stage relates. If the lessor under the agreement described in subparagraph (C) leases the property from another person, this exception shall also apply to any agreement between the lessor irfi;:. ' and such person which is integrally related to, and entered into at the same time as, such agreement, and which calls for comparable payments of rent over the primary term of the agreement.

98 STAT. 613

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(3) SCHEDULE OF DEEMED RENTAL PAYMENTS.—

(A) IN GENERAL.—In any case to which paragraph (2)(B) applies, for purposes of the Internal Revenue Code of 1954, 26 USC i et seq. the lessor shall be treated as having received or accrued

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