PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2335 "(A) LOAD CHARGE.—The term 'load charge' means any sales or similar charge incurred by a person in acquiring stock of a regulated investment company. Such term does not include any charge incurred by reason of the reinvest- ment of a dividend. "(B) REINVESTMENT RIGHT.— The term 'reinvestment right' means any right to acquire stock of 1 or more regu- lated investment companies without the payment of a load charge or with the payment of a reduced charge. "(C) NoNRECOGNiTiON TRANSACTIONS.— I f the taxpayer ac- quires stock in a regulated investment company from an- other person in a transaction in which gain or loss is not recognized, the taxpayer shall succeed to the treatment of such other person under this subsection." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 852 note, shall apply to charges incurred after October 3, 1989, in taxable years ending after such date. (c) REGULATED INVESTMENT COMPANIES REQUIRED TO ACCRUE DIVI- DENDS ON THE EX-DIVIDEND DATE.— (1) IN GENERAL.—Subsection (b) of section 852 (relating to treatment of companies and shareholders) is amended by adding at the end thereof the following new paragraph: " (9) DIVIDENDS TREATED AS RECEIVED BY COMPANY ON EX-DIVI- DEND DATE. — For purposes of this title, if a regulated investment company is the holder of record of any share of stock on the record date for any dividend payable with respect to such stock, such dividend shall be included in gross income by such com- pany as of the later of— "(A) the date such share became ex-dividend with respect to such dividend, or "(B) the date such company acquired such share," (2) EFFECTIVE DATE.— The amendment made by paragraph (1) 26 USC 852 note, shall apply to dividends in cases where the stock becomes ex- dividend after the date of the enactment of this Act. SEC. 7205. LIMITATION ON THRESHOLD REQUIREMENT UNDER SECTION 382 BUILT-IN GAIN AND LOSS PROVISIONS. (a) GENERAL RULE. — Clause (i) of section 382(h)(3)(B) (relating to threshold requirement) is amended to read as follows: "(i) IN GENERAL. — If the amount of the net unrealized built-in gain or net unrealized built-in loss (determined without regard to this subparagraph) of any old loss corporation is not greater than the lesser of— "(I) 15 percent of the amount determined for purposes of subparagraph (A)(i)(D, or "(II) $10,000,000, the net unrealized built-in gain or net unrealized built-in loss shall be zero." (b) CONFORMING AMENDMENT TO ADJUSTED CURRENT EARNINGS PREFERENCE. —Subparagraph (H) of section 56(g)(4) (relating to treat- ment of certain ownership changes) is amended by striking clause (ii) and all that follows and inserting the following: "(ii) there is a net unrealized built-in loss (within the meaning of section 382(h)) with respect to such corpora- tion, then the adjusted basis of each asset of such corporation (immediately after the ownership change) shall be its
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