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TITLE 26-INTERNAL REVENUE CODE least 10 percent in value of the outstanding stock of the distributing corporation, but only if the redemption qualifies under sec- tion 302(b)(3) (determined without the ap- plication of section 302(c)(2)(A)(ii)); (B) a distribution of stock or an obligation of a corporation- (I) which is engaged in at least one trade or business, (ii) which has not received property con- stituting a substantial part of its assets from the distributing corporation, in a transaction to which section 351 applied or as a contribution to capital, within the 5-year period ending on the date of the distribution, and (iii) at least 50 percent in value of the outstanding stock of which is owned by the distributing corporation at any time within the 9-year period ending one year before the date of the distribution; (C) a distribution of stock or securities pursuant to the terms of a final judgment rendered by a court with respect to the dis- tributing corporation in a court proceeding under the Sherman Act (15 U.S.C. 1-7) or the Clayton Act (15 U.S.C. 12-27), or both, to which the United States is a party, but only if the distribution of such stock or se- curities in redemption of the distributing corporation's stock is in furtherance of the purposes of the judgment; (D) a distribution to the extent that sec- tion 303(a) (relating to distributions in re- demption of stock to pay death taxes) ap- plies to such distribution; (E) a distribution to a private foundation in redemption of stock which is described in section 537(b)(2)(A) and (B); (F) a distribution by a corporation to which part I of subehapter M (relating to regulated investment companies) applies, if such distribution is in redemption of its stock upon the demand of the shareholder; and (H)' a distribution of stock to a distribu- tee which is not an organization exempt from tax under section 501(a), if with re- spect to such distributee, subsection (a)(1) or (b)(1) of section 1101 (relating to distri- butions pursuant to Bank Holding Compa- ny Act) applies to such distribution. (Aug. 16, 1954, ch. 736, 68A Stat. 94; Dec. 30, 1969, Pub. L. 91-172, title IX, § 905(a), (b)(1), 83 Stat. 713, 714; Oct. 2, 1976, Pub. L. 94-452, § 2(b), 90 Stat. 1511; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(a)(42)(A), (B)(i), (C), 90 Stat. 1771.) REFERENCES IN TEXT The Sherman Act, referred to in subsec. (d)(2)(C), is act July 2, 1890, ch. 647, 26 Stat. 209, as amended, which is classified to sections 1 to 7 of Title 15, Com- merce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1 of Title 15 and Tablts volume. The Clayton Act, referred to in subsec. (d)(2)(C), is act Oct. 15, 1914, ch. 323, 38 Stat. 730, as amended, and is set out as sections 12, 13, 14 to 19, 20, 21, and 22 to 27 of Title 15, Commerce and Trade, and sections 52 and 53 of Title 29, Labor. Sections 9 and 21 to 25 of 'So in original. Subsec. (G) has been redesignated subsec. (F). the act were repealed by act June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948, and their provi- sions are now covered by sections 402, 660, 3285, and 3691 of Title 18, Crimes and Criminal Procedure, except that section 23 of the act is obsolete and not now covered. Sections 17 to 19 of the act were repealed by act June 25, 1948, ch. 646, § 39. 62 Stat. 992, eff. Sept. 1, 1948, and their provisions are now covered by rule 65 of the Federal Rules of Civil Procedure, Title 28. App., Judiciary and Judicial Procedure. For com- plete classification of this Act to the Code, see Tables volume. The Bank Holding Company Act, referred to in subsec. (d)(2)(H), probably means act May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified prin- cipally to chapter 17 (§ 1841 et seq.) of Title 12, Banks and Banking. See section 1103 of Title 26. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of Title 12 and Tables volume. AMENDMENTS 1976-Subsec. (d)(1)(B). Pub. L. 94-455, §1901(a) (42)(A), substituted "then a gain shall be recognized" for "then again shall be recognized". Subsec. (d)(2). Pub. L. 94-452 and Pub. L. 94-455 § 1901(a)(42)(B)(i), (C), struck out subpar. (C). relating to certain distributions before Dec. 1, 1974, struck out "26 Stat. 209;" before "15 U.S.C. 1-7)" and "38 Stat. 730;" before "15 U.S.C. 12-27)" in subpar. (D), added subpar. (H), and redesignated subpars. (D) through (0), as so amended, as subpars. (C) to (F), ruspectively. 1969-Subsec. (a). Pub. L. 91-172, § 905(b)(1), insert- ed reference to subsec. (d). Subsec. (d). Pub. L. 91-172, § 905(a), added subsec. (d). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsecs. (d)(1). (2) by section 1901(a)(42)(A), (C) of Pub. L. 94-455 effective for tax- able years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. Section 1901(a)(42)(B)(ii) of Pub. L. 94-455 provided that: "The amendments made by clause (i) [repealing subsec. (d)(2)(C) of this section and redesignating sub- secs. (d)(2)(D), (E), (F), (G), as subsecs. (d)(2)(C), (D), (E), (F) of this section] shall apply only with respect to distributions after November 30, 1974." Section 2(d)(4) of Pub. L. 94-452 provided that: "The amendment made by subsection (b) [amending this section] shall take effect on October 1, 1977, with re- spect to distributions after December 31, 1975, in tax- able years ending after December 31, 1975." EFFECTIVE DATE OF 1969 AMENDMENT Section 905(c) of Pub. L. 91-172, as amended by Pub. L. 91-675, Jan. 12, 1071, 84 Stat. 2059, provided that: "(1) Except as provided in paragraphs (2), (3). (4), and (5), the amendments made by subsections (a) and (b) [adding subsec, (d) of this section and amending sections 301(b)(1)(B)(ii), (d)(2)(B) and 312(c)(3) of this title] shall apply with respect to distributions after November 30, 1969. "(2) The amendments made by subsections (a) and (b) shall not apply to a distribution before April 1, 1970, pursuant to the terms of- "(A) a written contract which was binding on the distributing corporation on November 30, 1969, and at all times thereafter before the distribution, "(B) an offer made by the distributing corporation before December 1, 1969, "(C) an offer made in accordance with a request for a ruling filed by the distributing corporation with the Internal Revenue Service before December 1, 1969, or "(D) an offer made in accordance with a registra- tion statement filed with the Securities and Ex- change Commission before December 1, 1969. Page 240