100 STAT. 2516
PUBLIC LAW 99-514—OCT. 22, 1986 acquire employer securities for the plan, or are used to refinance such a loan, or "(B) any loan to a corporation to the extent that, within 30 days, employer securities are transferred to the plan in an amount equal to the proceeds of such loan and such securities are allocable to accounts of plan participants within 1 year of the date of such loan, except that this subparagraph shall not apply to any loan the commitment period of which exceeds 7 years. For purposes of this paragraph, the term 'employer securities' has the meaning given such term by section 409(1)." (c) EFFECTIVE DATES.—
(1) DIVIDENDS.—The amendments made by subsection (a) shall apply to dividends paid in taxable years beginning after the date of the enactment of this Act. (2) SUBSECTION (b).—
(A) The amendments made by subsection (b)(1) shall apply to loans used to acquire employer securities after the date of the enactment of this Act, including loans used to refinance loans used to acquire employer securities before such date if such loans were used to acquire employer securities after May 23, 1984. (B)(i) Section 133(b)(1)(A) of the Internal Revenue Code of 1986, as amended by subsection (b)(2), shall apply to any loan used to refinance a loan which— (I) met the requirements of section 1330t))(l) (as in effect when such loan was entered into), and (II) was used to acquire securities after July 18, 1984. (ii) If a loan described in clause (i) has a term of greater than 7 years, clause (i) shall apply only to interest accruing on such loan during the first 7 years. (C) Section 133(b)(1)(B) of the Internal Revenue Code of 1986, as added by - subsection (b)(2), shall apply to loans incurred after the date of enactment of this Act.
SEC. 1174. REQUIREMENTS FOR EMPLOYEE STOCK OWNERSHIP PLANS. (a) DISTRIBUTIONS ON PLAN TERMINATIONS PERMITTED.—
(1) IN GENERAL.—Paragraph (1) of section 409(d) (requiring that employer securities must stay in the plan) is amended by striking out "or separation from service" and inserting in lieu thereof "separation from service, or termination of the plan". (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to plan terminations after December 31, 1984.
OJ) DISTRIBUTION AND PAYMENT REQUIREMENTS.—
(1) IN GENERAL.—Section 409 (relating to qualifications for employee stock ownership plans) is amended by redesignating ,,, subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: "(o) DISTRIBUTION AND PAYMENT REQUIREMENTS.—A plan meets the requirements of this subsection if— "(1) DISTRIBUTION REQUIREMENT.—
"(A) IN GENERAL.—The plan provides that, unless the participant otherwise elects, the distribution of the participant's account balance in the plan will commence not later than 1 year after the close of the plan year—