Page:United States Statutes at Large Volume 98 Part 1.djvu/705

 PUBLIC LAW 98-369-JULY 18, 1984

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98 STAT. 657

"(iii) reductions under paragraph (2) in the amount required to be withheld, shall be made at the time and manner, and shall include such information, as the Secretary shall prescribe by regulations. "(B) REQUESTS TO BE HANDLED WITHIN 90 DAYS.—The Secretary shall take action with respect to any request described in subparagraph (A) within 90 days after the Secretary receives the request.

"(d) LiABiuTY OF TRANSFEROR'S AGENTS OR TRANSFEREE'S AGENTS.— "(1) NOTICE OF FALSE AFFIDAVIT; FOREIGN CORPORATIONS.—If—

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"(A) the transferor furnishes the transferee an affidavit described in paragraph (2)(A) of subsection (b) or a domestic sd. t corporation furnishes the transferee an affidavit described in paragraph (3) of subsection (b), and aomm. "(B) in the case of— "(i) any transferor's agent, the transferor is a foreign corporation or such agent has actual knowledge that such affidavit is false, or "(ii) any transferee's agent, such agent has actual knowledge that such affidavit is false, such agent shall so notify the transferee at such time and in such manner as the Secretary shall require by regulations. "(2) FAILURE TO FURNISH NOTICE.—

"(A) IN GENERAL.—If any transferor's agent or transferee's agent is required by paragraph (1) to furnish notice, but fails to furnish such notice at such time or times and in such manner as may be required by regulations, such agent shall have the same duty to deduct and withhold that the transferee would have had if such agent had complied with paragraph (1). "(B) LIABILITY LIMITED TO AMOUNT OF COMPENSATION.—An

agent's liability under subparagraph (A) shall be limited to the amount of compensation the agent derives from the transaction. "(3) TRANSFEROR'S AGENT.—For purposes of this subsection, the term 'transferor's agent' means any person who represents the transferor— "(A) in any negotiation with the transferee or any transferee's agent related to the transaction, or "(B) in settling the transaction. "(4) TRANSFEREE'S AGENT.—For purposes of this subsection, the term 'transferee's agent' means any person who represents the transferee— "(A) in any negotiation with the transferor or any transferor's agent related to the transaction, or "(B) in settling the transaction. "(5)

SETTLEMENT OFFICER NOT TREATED AS TRANSFEROR'S

AGENT.—For purposes of this subsection, a person shall not be treated as a transferor's agent or transferee's agent with respect to any transaction merely because such person performs 1 or more of the following acts: "(A) The receipt and the disbursement of any portion of the consideration for the transaction. "(B) The recording of any document in connection with the transaction.

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