96 STAT. 510
PUBLIC LAW 97-248—SEPT. 3, 1982 "(B) ASSIGNMENTS OR PLEDGES.—If during any taxable
year a participant or beneficiary assigns (or agrees to assign) or pledges (or agrees to pledge) any portion of his interest in a qualified employer plan, such portion shall be treated as having been received by such individual as a loan from such plan. "(2) EXCEPTION FOR CERTAIN LOANS.— "(A) GENERAL RULE.—Paragraph (1) shall not apply to
any loan to the extent that such loan (when added to the outstanding balance of all other loans from such plan whether made on, before, or after August 13, 1982), does not exceed the lesser of— "(i) $50,000, or "(ii) Vz of the present value of the nonforfeitable accrued benefit of the employee under the plan (but not less than $10,000). "(B) REQUIREMENT THAT LOAN BE REPAYABLE WITHIN 5 YEARS.—
26 USC 267.
"(i) IN GENERAL.—Subparagraph (A) shall not apply to any loan unless such loan, by its terms, is required to be repaid within 5 years. "(ii) EXCEPTION FOR HOME LOANS.—Clause (i) shall not apply to any loan used to acquire, construct, reconstruct, or substantially rehabilitate any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as a principal residence of the participant or a member of the family (within the meaning of section 267(c)(4)) of the participant. "(C) RELATED EMPLOYERS AND RELATED PLANS.—For purposes of this paragraph— "(i) the rules of subsections (b), (c), and (m) of section 414 shall apply, and "(ii) all plans of an employer (determined after the application of such subsections) shall be treated as 1 plan. "(3) QUALIFIED EMPLOYER PLAN, ETC.—For purposes of this subsection, the term 'qualified employer plan' means any plan which was (or was determined to be) a qualified employer plan (as defined in section 219(e)(3) without regard to subparagraph (D) thereof). For purposes of this subsection, such term includes any government plan (as defined in section 219(e)(4)). "(4)
SPECIAL RULES FOR LOANS, ETC., FROM CERTAIN CON-
TRACTS.—For purposes of this subsection, any amount received as a loan under a contract purchased under a qualified employer plan (and any assignment or pledge with respect to such a contract) shall be treated as a loan under such employer plan." (b) TECHNICAL AMENDMENTS.—
95 Stat. 284. 26 USC 72. 95 Stat. 278. 26 USC 72 note.
(1) Subsection (m) of section 72 is amended by striking out paragraphs (4) and (8). (2) Subparagraph (A) of section 72(o)(3) is amended by striking out "subsection (m)(4) and (8)" and inserting in lieu thereof "subsection (p)". (c) EFFECTIVE D A T E. —
(1) IN GENERAL.—The amendments made by this section shall apply to loans, assignments, and pledges made after August 13,
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