90 STAT. 1503
PUBLIC LAW 94-452—OCT. 2, 1976
Public Law 94-452 94th Congress An Act To amend the Internal Revenue Code of 1954 with resi^ect to the tax treatment of certain divestitures of a.ssets by bank holding companies.
Be it enacted by the Henate and House of Representatives United States of America in Congress assembled,
Oct. 2, 1976 [H.R. 11997]
of the
Bank Holding Company Tax Act SECTION 1. SHORT TITLE. of 1976. This Act may be cited as the " B a n k H o l d i n g Company T a x Act of 26 USC 1101 1976". note. SEC. 2. DISTRIBUTIONS PURSUANT TO BANK HOLDING COMPANY ACT AMENDMENTS OF 1970. (a) T A X - F R E E D I S T R I B U T I O X S. — Part VIII of subchapter O of chap-
ter 1 of the Internal Revenue Code of 1954 (relating to distributions l)uisuant to Bank Holding Company Act of 1956) is amended to read 12 USC 1841 note. as follows: "PART VIII — D I S T R I B U T I O N S P U R S U A N T TO B A N K HOLDING COMPANY ACT "Sec. 1101. Distributions pursuant to Bank Holding Company Act. "Sec. 1102. Special rules. "Sec. 1108. Definitions. "SEC. 1101. DISTRIBUTIONS PURSUANT TO BANK HOLDING COMPANY ACT. " (a) DISTRIBUTIONS OF CERTAIN N O N - B A N K I N G PROPERTY.— " (1) DISTRIBUTIONS OF PROHIBITED I'ROPERTY.—If—
" (A) a qualified bank holding corporation distributes prohibited property (other than stock received in an exchange to which subsection (c)(2) applies) — " (i) to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation, or " ( i i) to a shareholder, in exchange for its preferred stock, or " ( i i i) to a security holder, in exchange for its securities, and " (B) the Board has, before the distribution, certified that the distribution of such prohibited property is necessary or appropriate to effectuate section 4 of the Bank H o l d i n g Company Act, then no gain to the shareholder or security holder from the receipt of such property shall be recognized. " (2) DISTRIBUTIONS o r STOCK AND SECURITIES RECEIVED I N AN EXCIIAXOE TO W H I C H SUBSECTION (C)(2) APPLIES.—If—
" (A) a qualified bank holding corporation distributes— " (i) common stock received in an exchange to which subsection (c)(2) applies to a shareholder (with respect to its stock held by such shareholder), without the surrender by such shareholder of stock in such corporation, or
89-194 O—78—Dt. 1
9fl
26 USC 1101.
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