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TITLE 26-INTERNAL REVENUE CODE () such property is all or part of the property by reason of which such corpora- tion controls (within the meaning of sec- tion 2(a) of the Bank Holding Company Act) a bank or bank holding company, or such property is part of the property by reason of which such corporation did con- trol a bank or a bank holding company before any property of the same kind was distributed under subsection (b)(1) or ex- changed under this paragraph, and (ii) the exchange and distribution are necessary or appropriate to effectuate the policies of such Act, then paragraph (1) shall not apply with re- spect to such distribution. (d) Distributions to avoid Federal income tax (1) Prohibited property Subsection (a) shall not apply to a distribu- tion if, in connection with such distribution, the distributing corporation retains, or trans- fers after July 7, 1970, to any corporation, property (other than prohibited property) as part of a plan one of the principal purposes of which is the distribution of the earnings and profits of any corporation. (2) Banking property Subsection (b) shall not apply to a distribu- tion if, in connection with such distribution, the distributing corporation retains, or trans- fers after July 7, 1970 to any corporation, property (other than property described in subsection (b)(1)(B)(i)) as part of a plan one of the principal purposes of which is the dis. tribution of the earnings and profits of any corporation. (e) Final certification (1) For subsection (a) Subsection (a) shall not apply with respect to any distribution by a corporation unless the Board certifies, before the close of the cal- endar year following the calendar year in which the last distribution occurred, that the corporation has (before the expiration of the period prohibited property is permitted under the Bank Holding Company Act to be held by a bank holding company) disposed of all of the property the disposition of which is neces- sary or appropriate to effectuate section 4 of the Bank Holding Company Act. (2) For subsection (b) Subsection (b) shall not apply with respect to any distribution by a corporation unless the Board certifies, before the close of the cal- endar year following the calendar year in which the last distribution occurred, that the corporation has (before the expiration of the period prohibited property is permitted under the Bank Holding Company Act to be held by a bank holding company) ceased to be a bank holding company. (f) Certain exchanges of securities In the case of an exchange described in sub- section (a)(2)(A)(iv) or subsection (b)(2)(A)(iv), subsection (a) or subsection (b) (as the case may be) shall apply only to the extent that the principal amount of the securities received does not exceed the principal amount of the securi- ties exchanged. REFERENCES IN TEXT The Bank Holding Company Act of 1956, referred to in the text, is act May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified principally to chapter 17 (§ 1841 et seq.) of Title 12, Banks and Banking. Section 4 of the Bank Holding Company Act of 1956, referred to in subsecs. (a)(1)(B), (c)(2)(C), (e)(1), and section 2 of the Bank Holding Company Act of 1956, referred to in subsecs. (b)(1)(B)(i) and (c)(3)(C)(i), are classified to sections 1843 and 1841 of title 12, respec- tively. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of Title 12 and Tables volume. "The date of enactment of this part", referred to in subsecs. (d)(3) and (e)(2), is May 9, 1956. EFFECTIVE DATE OF 1976 AMENDMENT Section 2(d)(1) of Pub. L. 94-452 provided that: "The amendments made by subsections (a) and (c) [amend- ing this section and sections 1102 and 1103 of this title] shall take effect on October 1, 1977, with respect to distributions after July 7, 1970, In taxable years ending after July 7, 1970, but only in the case of quali- fled bank holding corporations (within the meaning of section 1103(b) of the Internal Revenue Code of 1954 [section 1103(b) of this title], as amended by subsec- tion (a) of this section). EFFECTIVE DATE Section 10(c) of act May 9, 1956, provided that sec- tions 1101 to 1103 of this title shall apply with respect to taxable years ending after May 9, 1956. SHORT TITLE OF 1976 AMENDMENT Section 1 of Pub. L. 94-452 provided that: "This Act [enacting section 6158 of this title, amending this sec- tion and sections 311, 1102, 1103, 6151, 6503, and 6601 of this title, and enacting provisions set out as notes under this section and sections 311 and 6158 of this title] may be cited as the 'Bank Holding Company Tax Act of 1976'." PRIOR DISTRIBUTIONS; LIMITATIONS Section 2(d)(2), (3) of Pub. L. 94-452 provided that: "(2) SPECIAL RULE FOR CERTIFYING DISTRIBUTIONS WHICH HAVE ALREADY TAKEN PLACE.-For purposes of sections 1101(a)(1)(B), 1101(a)(3)(D), 1101(b)(1)(B), 1101(c)(2)(C), 1101(c)(3)(C), and 1101(e) of the Inter- nal Revenue Code of 1954 (as amended by subsection (a) of this section, [subsecs. (a)(1)(B), (a)(3)(D), (b)(1)(B), (c)(2)(C), (c)(3)(C), and (e) of this section], in the case of any distribution which takes place on or before the 90th day after the date of the enactment of this Act, [Oct. ',, 1976], a certification by the Federal Reserve Board described in any such section shall be treated as made before the distribution (or, in the case of section 1101(e), before the close of the calendar year following the calendar year in which the last dis- tribution occurred) if application for such certification is made before the close of the 90th day after the date of the enactment of this A't [Oct. 2, 1976]. "(3) PERIOD OF LIMITATIONS.-If refund or credit of any overpayment of income tax attributable to the amendment made by subsection (a) is prevented at any time before October 1, 1978, by the operation of any law or rule of law, refund or credit of such over- payment may, nevertheless, be made or allowed if claim therefor is filed before October 1, 1978." APPLICABILITY TO CERTAIN SUCCESSOR CORPORATIONS Section 3(d) of Pub. L. 94-452 provided that: "If, after July 7, 1970, and before August 1, 1974- "(1) a corporation acquires substantially all of the properties of a qualified bank holding corporation (as defined in section 1103(b) of the Internal Rev- enue Code of 1954) [section 1103(b) of this title] in a transaction described in sections 368(a)(1)(A) and 368(a)(2)(D) [sections 368(a)(1)(A) and 368(a)(2)(D) of this title], and Page 669 § 1101