Distributions in redemption of interests in unit investment trusts
In the case of a unit investment trust—
(1)#
which is registered under the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 and following) and issues periodic payment plan certificates (as defined in such Act), and
(2)#
substantially all of the assets of which consist of securities issued by a management company (as defined in such Act),
section 562(c) (relating to preferential dividends) shall not apply to a distribution by such trust to a holder of an interest in such trust in redemption of part or all of such interest, with respect to the capital gain net income of such trust attributable to such redemption.