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TITLE 26-INTERNAL REVENUE CODE Dec. 30, 1969, Pub. L. 91-172, title IV, § 433(a), (c), 83 Stat. 623, 624; Oct. 4, 1976, Pub. L. 94- 455, title X, § 1044(a), title XIV, § 1402(b)(1)(G), 90 Stat. 1642.) TAXABLE YEA s AFTER 1977 Subsec. (c)(2) of this section amended by Pub. L. 94-455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, effective for taxable years beginning after Dec. 31, 1977, by sub- stituting "1 year"for "9 months". AMENDMENTS 1976-Subsec. (c)(2). Pub. L. 94-455, § 1402(b)(1)(G), (2), provided that "6 months" would be changed to "9 months" for taxable years beginning in 1977. Subsec. (c)(4). Pub. L. 94-455, § 1044(a), added par. (4). 1969-Pub. L. 91-172, §433(c), substituted "Bad debts, losses, and gains with respect to securities held by financial institutions" for "Bad debt and loss de- duction with respect to securities held by banks" in the section catchline. Subsec. (c). Pub. L. 91-172, § 433(a), redesignated ex- isting provisions as par. (1), expended the p,'visions by reference to sections 585, 586 and 593 in ptc. (1) as redesignated, and added pars. (2) and (3). 1958-Subsec. (c). Pub. L. 85-866 deleted "with inter- est coupons or in registered form," preceding "exceed the gains". Er r icTvE DATE o 1976 AismimrT Section 1044(b) of Pub. L. 94-455 providnd that: "(1) The amendment made by subsection (a) (enact- ing subsec. (c)(4) of this section] shall apply with re- spect to taxable years beginning after July 11, 1969. "(2) If the refund or credit of any overpayment at- tributable to the application of the amendment made by subsection (a) to any taxable year is otherwise pre- vented by the operation of any law or rule of law (other than section 7122 of the Internal Revenue Code of 1954, relating to compromises) on the day which is one year after the date of the enactment of this Act [Oct. 4, 1976], such credit or refund shall be neverthe- less allowed or made if claim therefor is filed on or before such day." Section 1402(b)(1) of Pub. L. 94-455 provided in part that the substitution of "9 months" for "6 months" in subsec. (c)(2) of this section by section 1402(b)(1)(G) of Pub. L. 94-455 is effective with respect to taxable years beginning in 1977. EFECzvE DATE oF 1969 AME-DuENr Section 433(d) of Pub. L. 91-172 provided that: "(1) In general.-The amendments made by this sec- tion [amending subsec. c) of this section and section 1243(1) of this title! shall apply to taxable years be- ginning after July 1", 969. "(2) Election for small business investment compa- nies and business development corporations.-Not- withstanding paragraph (1), in the case of a financial institution described in section 586(a) of the Internal Revenue Code of 1954 [section 586(a) of this title], the amendments made by this section [amending subsec. Wc) of this section and section 1243(1) of this title] shall not apply for its taxable years beginning after July 11, 1969, and before July 11, 1974, unless the tax- payer so elects at such time and in such manner as shall be prescribed by the Secretary of the Treasury or his delegate. Such election shall be irrevocable and shall apply to all such taxable years." E mTxv DATE OF 1958 AMDmENT Amendment of subsec. (c) by Pub. L. 85-866 applica- ble to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c) of Pub. L. 85-866, set out as an Effective Date of 1958 Amend- ment note under section 165 of this title. CRoss REFERENcEs Bonds and other evidences of indebtedness, sale or exchange, see section 1232 of this title. Capital asset defined, see section 1221 of this title. Dealers in securities, see section 1236 of this title. Definition of bank, see section 581 of this title. SEcTION REFERRm TO IN OrmEn SECTzONs This section is referred to in sections 166, 581, 1236 of this title. [§ 583. Repealed. Pub. L. 94-455, title XIX, § 1901(a)(82), Oct 4, 1976, 90 Stat. 17781 Section, act Aug. 16, 1954, ch. 736, 68A Stat. 736, re- lated to deductions by certain taxpayers of dividends paid to the United States or any instrumenta'ity thereof exempt from Federal Income taxes on the pre- ferred stock of the corporation owned by the United States or such instrumentality. EFFECTIVE DATE OF REPEAL Repeal of section effective with respect to taxable 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. § 584. Common trust funds (a) Definitions For purposes of this subtitle, the term "common trust fund" means a fund maintained by a bank- (1) exclusively for the collective investment and reinvestment of moneys contributed thereto by the bank in its capacity- (A) as a trustee, executor, administrator, or guardian, or (B) as a custodian of accounts- (1) which the Secretary determines are established pursuant to a State law which is substantially similar to the Uniform Gifts to Minors Act as published by the American Law Institute, and (ii) with respect to which the bank es- tablishes, to the satisfaction of the Secre- tary, that it has duties and responsibilities similar to duties and responsibilities of a trustee or guardian; and (2) in conformity with the rules and regula- tions, prevailing from time to time, of the Board of Governors of the Federal Reserve System or the Comptroller of the Currency pertaining to the collective investment of trust funds by national banks. For purposes of this subsection, two or more banks which are members of the same affiliated group (within the meaning of section 1504) shall be treated as one bank for the period of affiliation with respect to any fund of which any of the member banks is trustee or two or more of the member banks are cotrustees. (b) Taxation of common trust funds A common trust fund shall not be subject to taxation under this chapter and for purposes of this chapter shall not be considered a corpora- tion. (c) Income of participants in fund (1) Inclusions In taxable income Each participant in the common trust fund in computing its taxable income shall include, whether or not distributed and whether or not distributable- Page 431 § 584