Page:United States Statutes at Large Volume 98 Part 1.djvu/758

 98 STAT. 710

PUBLIC LAW 98-369—JULY 18, 1984 "(A) DIVIDENDS OUT OF CURRENT EARNINGS AND PROFITS,—

In the case of any dividend paid by any FHLB out of earnings and profits of the FHLB for the taxable year in which such dividend was paid, paragraph (1) shall not apply to that portion of such dividend which bears the same ratio to the total dividend as— "(i) the dividends received by the FHLB from the FHLMC during such taxable year, bears to "(ii) the total earnings and profits of the FHLB for such taxable year. "(B) DIVIDENDS OUT OF ACCUMULATED EARNINGS AND PROF-

ITS.—For purposes of subparagraph (A), in the case of any dividend which is paid out of any accumulated earnings and profits of any FHLB, paragraph (1) shall not apply to that portion of the dividend which bears the same ratio to the total dividend as— "(i) the amount of dividends received by such FHLB from the FHLMC which are out of earnings and profits of the FHLMC— "(I) for taxable years ending after December 31, 1984, and "(II) which were not taken into account under subparagraph (A), bears to "(ii) the total accumulated earnings and profits of the FHLB as of the time such dividend is paid. For purposes of clause (ii), the accumulated earnings and profits of the FHLB as of January 1, 1985, shall be treated as equal to its retained earnings as of such date. "(C) DEFINITIONS.—For purposes of this paragraph— "(i) FHLB.—The term 'FHLB' means any Federal Home Loan Bank. "(ii) FHLMC—The term 'FHLMC means the Federal Home Loan Mortgage Corporation. "(iii) TAXABLE YEAR OF FHLB.—The taxable year of an FHLB shall, except as provided in regulations prescribed by the Secretary, be treated as the calendar year." (c) TREATMENT OF NET OPERATING LOSSES OF THE FEDERAL HOME LOAN MORTGAGE CORPORATION.—

26 USC 172.

(1) IN GENERAL.—Subparagraph (H) of section 172(b)(1) (relating to years to which net operating losses may be carried) is amended— (A) by inserting ", or a net operating loss of the Federal Home Loan Mortgage Corporation for any taxable year beginning after December 31, 1984" after "1981", (B) by striking out "the FNMA mortgage disposition loss (within the meaning of subsection (i))" in clause (i) and inserting in lieu thereof "the mortgage disposition loss (within the meaning of subsection (i))", and (C) by striking out "FNMA mortgage disposition loss" in clause (ii) and inserting in lieu thereof "mortgage disposition loss". (2) CONFORMING AMENDMENT.—Subsection (i) of section 172 is

amended— (A) by striking out "FNMA mortgage disposition loss" each place it appears in paragraphs (1) and (2) (including in

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