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TITLE 26-INTERNAL REVENUE CODE (B) Corporations or associations without capital stock organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for, and insurance of shares or deposits in- (I) domestic building and loan associ- ations, (ii) cooperative banks without capital stock organized and operated for mutual purposes and without profit, or (iii) mutual savings banks not having cap- ital stock represented by shares. (C) Corporations or associations organized before September 1, 1957, and operated for mutual purposes and without profit for the purpose of providing reserve funds for associ- ations or banks described in clause (I), (ii), or (iti) of subparagraph (B); but only if 85 per- cent or more of the income is attributable to providing such reserve funds and to invest- ments. This subparagraph shall not apply to any corporation or association entitled to ex- emption under subparagraph (B). (15) Mutual insurance companies or associ- ations other than life or marine (including inter-insurers and reciprocal underwriters) if the gross amount received during the taxable year from the items described in section 822 (b) (other than paragraph (1)(D) thereof) and premiums (including deposits and assess- ments) does not exceed $150,000. (16) Corporations organized by an associ- ation subject to part IV of this subchapter or members thereof, for the purpose of financ- ing the ordinary crop operations of such members or other producers, and operated in conjunction with such association. Exemption shall not be denied any such corporation be- cause It has capital stock, if the dividend rate of such stock is fixed at not to exceed the legal rate of interest in the State of incorpor- ation or 8 percent per annum, whichever is greater, on the value of the consideration for which the stock was issued, and if substantial- ly all such stock (other than nonvoting pre- ferred stock, the owners of which are not en- titled or permitted to participate, directly or indirectly, in the profits of the corporation, on dissolution or otherwise, beyond the fixed dividends) is owned by such association, or members thereof; nor shall exemption be denied any such corporation because there is accumulated and maintained by it a reserve required by State law or a reasonable reserve for any necessary purpose. (17)(A) A trust or trusts forming part of a plan providing for the payment of supple- mental unemployment compensation bene- fits, if- (i) under the plan, it Is impossible, at any time prior to the satisfaction of all liabil- ities, with respect to employees under the plan, for any part of the corpus or income to be (within the taxable year or there- after) used for, or diverted to, any purpose other than the providing of supplemental unemployment compensation benefits, (Ii) such benefits are payable to employ- ees under a classification which is set forth in the plan and which Is found by the Sec- retary not to be discriminatory In favor of employees who are officers, shareholders, persons whose principal duties consist of su- pervising the work of other employees, or highly compensated employees, and (iii) such benefits do not discriminate in favor of employees who are officers, share- holders, persons whose principal duties con- sist of supervising the work of other em- ployees, or highly compensated employees. A plan shall not be considered discrimina- tory within the meaning of this clause merely because the benefits received under the plan bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of the employees cov- ered by the plan. (B) In determining whether a plan meets the requirements of subparagraph (A), any benefits provided under any other plan shall not be taken into consideration, except that a plan shall not be considered discriminatory- (I) merely because the benefits under the plan which are first determined in a nondis- criminatory manner within the meaning of subparagraph (A) are then reduced by any sick, accident, or unemployment compensa- tion benefits received under State or Feder- al law (or reduced by a portion of such benefits if determined in a nondiscrimina- tory manner), or (Ii) merely because the plan provides only for employees who are not eligible to re- ceive sick, accident, or unemployment com- pensation benefits under State or Federal law the same benefits (or a portion of such benefits if determined in a nondiscrimina- tory manner) which such employees would receive under such laws if such employees were eligible for such benefits, or (tli) merely because the plan provides only for employees who are not eligible under another plan (which meets the require- ments of subparagraph (A) of supplemental unemployment compensation benefits pro- vided wholly by the employer the same benefits (or a portion of such benefits if de- termined in a nondiscriminatory manner) which such employees would receive under such other plan if such employees were eli- gible under such other plan, but only if the employees eligible under both plans would make a classification which would be non- discriminatory within the meaning of sub- paragraph (A). (C) A plan shall be considered to meet the requirements of subparagraph (A) during the whole of any year of the plan if on one day in each quarter it satisfies such requirements. (D) The term "supplemental unemploy- ment compensation benefits" means only- (I) benefits which are paid to an employee because of his involuntary separation from the employment of the employer (whether or not such separation is temporary) result- ing directly from a reduction in force, the discontinuance of a plant or operation, or other similar conditions, and (ii) sick and accident benefits subordinate to the benefits described in clause (i). (E) Exemption shall not be denied under subsection (a) to any organization entitled to Page 376