79 STAT. ]
PUBLIC LAW 89-243-OCT. 9, 1965
957
(b) SALES OF FOREIGN BRANCHES.—
(1) Section 4914(g)(1) is amended— ^ (A) by striking out "or" at the end of subparagraph (A); (B) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof "; or"; and (C) by adding at the end thereof the following new subparagraph: " (C) as part or all of the purchase price in a sale by such United States person of substantially all of the assets of a branch of such United States person located outside the United States." (2) Section 4914(g)(2) is amended to read as follows: "(2) LIMITATIONS.—Subparagraphs (A) and (B) of paragraph (1) shall not apply to the acquisition of a debt obligation if any of the stock sold or surrendered in connection with its acquisition was originally acquired with the intent to sell or surrender. Subparagraph (C) of paragraph (1) shall not apply to the acquisition of a debt obligation if any of the assets sold had been transferred to the branch for the purpose of sale (other than sale in the ordinary course of its trade or business)." (3) The heading of section 4914(g) is amended by inserting "OR SALE OF FOREIGN BRANCH" after "SUBSIDIARY". (4) Section 4914(b) (10) is amended to read as follows:
H J*|^- 8^\3.
" (10) ACQUISITIONS OF DEBT OBLIGATIONS ON SALE OR LIQUIDATION OF WHOLLY OW^NED FOREIGN SUBSIDIARIES O SALE OF FOREIGN R
BRANCHES.—Of debt obligations acquired in connection with the sale or liquidation of a wholly owned foreign corporation or the sale of a foreign branch, to the extent provided in subsection (g). " (c) CONSTRUCTION LOANS.—
(1) Section 4914(h) is amended to read as follows: "(h) CERTAIN DEBT MORTGAGES, ETC.—
OBLIGATIONS SECURED BY UNITED STATES
"(1) IN GENERAL.—The tax imposed by section 4911 shall not apply to the acquisition from a foreign obligor by a United States person of— " (A) a debt obligation of such foreign obligor which is secured by real property located in the United States, to the extent that such debt obligation— " (i) is a part of the purchase price of such real property (or of such real property and related personal property), or "(ii) arises out of a loan made by such United States person to the foreign obligor the proceeds of which are concurrently used as part of the purchase price of such real property (or of such real property and related personal property); or " (B) a debt obligation of such foreign obligor which is secured by real property located in the United States on which improvements are under construction by the obligor, if such debt obligation arises out of a loan made by such United States person all the proceeds of which are used— " (i) to finance the construction of such improvements, or " (ii) to repay all or any part of a loan made to finance such construction, if the construction loan has qualified (or would have qualified) under paragraph (2)(B) and such repayment occurs within 5 years after such construction loan is made.
26 USC 4911.
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