103 STAT. 2348 PUBLIC LAW 101-239—DEC. 19, 1989 "(A) the total number of employer securities held by such plan after such disposition is less than the total number of employer securities held after such acquisition, or "(B) except to the extent provided in regulations, the ' •"" value of employer securities held by such plan after the disposition is 50 percent or less of the total value of all employer securities as of the time of the disposition. For purposes of subparagraph (B), the aggregation rule of sec- tion 133(b)(6)(D) shall apply. "(2) STOCK DISPOSED OP BEFORE ALLOCATION. —Any disposition of section 133 securities to which paragraph (1) does not apply if— "(A) such disposition occurs before such securities are ' allocated to accounts of participants or their beneficiaries, and "(B) the proceeds from such disposition are not so allo- cated. " (d) SECTION NOT TO APPLY TO CERTAIN DISPOSITIONS.— "(1) IN GENERAL.— Th is section shall not apply to any disposi- tion described in paragraph (1), (3), or (4) of section 4978(d). "(2) CERTAIN REORGANIZATIONS. — For purposes of this section, any exchange of section 133 securities for employer securities of another corporation in any reorganization described in section 368(a)(1) shall not be treated as a disposition, but the employer securities received shall be treated as section 133 securities and as having been held by the plan during the period the securities which were exchanged were held. "(3) FORCED DISPOSITION OCCURRING BY OPERATION OF STATE LAW.—Any forced disposition of section 133 securities by an employee stock ownership plan occurring by operation of a State law shall not be treated as a disposition. This paragraph shall only apply to securities which, at the time the securities were acquired by the plan, were regularly traded on an estab- lished securities market. "(e) DEFINITIONS AND SPECIAL RULES.— For purposes of this sec- tion— "(1) LIABILITY FOR PAYMENT OF TAXES. —The teix imposed by this section shall be paid by the employer. "(2) SECTION 133 SECURITIES.— The term 'section 133 securities' means employer securities acquired by an employee stock ownership plan in a transaction to which section 133 applied, except that such term shall not include— "(A) qualified securities (as defined in section 4978(e)(2)), or "(B) qualified employer securities (as defined in section 4978A(f)(2), as in effect on the day before the date of the . ' enactment of this section). "(3) DISPOSITION.— The term 'disposition' includes any dis- "^ tribution. "(4) ORDERING RULES. — For ordering rules for dispositions of employer securities, see section 4978(b)(2)." (2) CONFORMING AMENDMENT.The table of sections for chap- ^ ter 43 is amended by inserting after the item relating to section 4978A the following new item: ^ "Sec. 4978B. Tax on disposition of employer securities to which section 133 applied.".