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TITLE 28-INTERNAL REVENUE CODE § 303(c)(5), 85 Stat. 522; Oct. 4, 1976, Pub. L. 94- 455, title XIX, §§ 1901(b)(11)(C), 1906(b)(13)(A), 1951(c)(2)(B), title XXI, § 2124(a)(3)(C), 90 Stat. 1795, 1834, 1840, 1917.) REnax~cEs IN TEXT Section 372 of the Internal Revenue Code of 1939 before its amendment by the Revenue Act of 1942, re- ferred to in subsec. (a)(3), was classified to section 372 of former Title 26, Internal Revenue Code. Section 372 was repealed by section 7851(a)(1)(A) of this title. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that ref- erences in the 1954 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1954 Code, which Is then applicable. The Revenue Act of 1942, referred to in subsec. (a)(3), is act Oct. 21, 1942, ch. 619, 56 Stat. 836. For complete classification of this Act to the Code, see Tables volume. AMENDMENTS 1976-Subsec. (a)(2). Pub. L. 94-455, §§ 1901 (b)(11)(C), 1906(b)(13)(A), 1951(c)(2)(B), 2124(a)(3)(C), struck out in subpar. (B) "168" before "169", "187" fol- lowing "185", and substituted "188, or 191" for "or 188" and in provisions following subpar. (0) struck out "or his delegate" following "Secretary". Subsec. (c). Pub. L. § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". 1971-Subsec. (a)(2)(B). Pub. L. 92-178 included ref- erence to section 188. 1969-Subsec. (f). Pub. L. 91-172 inserted reference to sections 184, 185 and 187 of this title. EPc'rivx DATE OF 1976 AMENDMENT Amendment of subsec. (a)(2)(B) by section 1901(b)(11)(C) of Pub. L. 94-455 effective for 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. Amendment of subsec. (a)(2)(B) by section 1951(0)(2)(B) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see sec- tion 1951(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 72 of this title. Amendment of subsec. (a)(2)(B) by section 2124(a)(3)(C) of Pub. L. 94-455 applicable with respect to additions to capital accounts made after June 14, 1976 and before June 15, 1981, see section 2124(a)(4) of Pub. L. 94-455, set out as an Effective Date note under section 191 of this title. EYFEcTIvz DATE OF 1971 AMmNnmaT Amendment of subsec. (a)(2)(B) of this section by Pub. L. 92-178 applicable to taxable years ending after Dec. 31, 1971, see section 303(d) of Pub. L. 92-178, set out as an Effective Date note under section 188 of this title. Erc'rrv DATE OF 1969 AMziMEwr Amendment by Pub. L. 91-172 applicable to taxable years ending after Dec. 31, 1968, see section 704(c) of Pub. L. 91-172, set out as a note under section 169 of this title. SECTION REFERRED TO IN OTMER SECTIONs This section is referred to in sections 617, 1081 of this title. § 1083. Definitions (a) Order of Securities and Exchange Commission For purposes of this part, the term "order of the Securities and Exchange Commission" means an order issued after May 28, 1938, by the Securities and Exchange Commission which requires, authorizes, permits, or approves trans- actions described in such order to effectuate section 11(b) of the Public Utility Holding Com- pany Act of 1935 (15 U.S.C. 79k(b)), which has become or becomes final in accordance with law. (b) Registered holding company; holding company system; associate company For purposes of this part, the terms "regis- tered holding company", "holding company system", and "associate company" shall have the meanings assigned to them by section 2 of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79b(a)). (c) Majority-owned subsidiary company For purposes of this part, the term "majority- owned subsidiary company" of a registered holding company means a corporation, stock of which, representing in the aggregate more than 50 percent of the total combined voting power of all classes of stock of such corporation enti- tled to vote (not including stock which is enti- tled to vote only on default or nonpayment of dividends or other special circumstances) is owned wholly by such registered holding com- pany, or partly by such registered holding com- pany and partly by one or more majority-owned subsidiary companies thereof, or by one or more majority-owned subsidiary companies of such registered holding company. (d) System group For purposes of this part, the term "system group" means one or more chains of corpora- tions connected through stock ownership with a common parent corporation if- (1) at least 90 percent of each class of the stock (other than (A) stock which is preferred as to both dividends and assets, and (B) stock which is limited and preferred as to dividends but which is not preferred as to assets but only if the total value of such stock is less than 1 percent of the aggregate value of all classes of stock which are not preferred as to both dividends and assets) for each of the cor- porations (except the common parent corpo- ration) is owned directly by one or more of the other corporations; and (2) the common parent corporation owns di- rectly at least 90 percent of each class of the stock (other than stock, which is preferred as to both dividends and assets) of at least one of the other corporations; and (3) each of the corporations is either a reg- istered holding company or a majority-owned subsidiary company. (e) Nonexempt property For purposes of this part, the term "nonex- empt property" means- (1) any consideration in the form of evi- dences of indebtedness owed by the transfer- or or a cancellation or assumption of debts or other liabilities of the transferor (including a continuance of encumbrances subject to which the property was transferred); (2) short-term obligations (including notes, drafts, bills of exchange, and bankers' accep- tances) having a maturity at the time of issu- ance of not exceeding 24 months, exclusive of days of grace; § 1083 Page 662