PUBLIC LAW 98-369—JULY 18, 1984 (B) EXTENSION OF TIME FOR MAKING ELECTION.—In
98 STAT. 953 the
case of any qualified stock purchase described in subparagraph (A), the time for making an election under section 338 of such Code shall not expire before the close of the 60th day after the date of the enactment of this Act. (10) SPECIAL RULES FOR DEEMED PURCHASES UNDER PRIOR LAW.—If, before October 20, 1983, a corporation was treated as making a qualified stock purchase (as defined in section 338(d)(3) of the Internal Revenue Code of 1954), but would not be so treated under the amendments made by paragraphs (5) and (6) of this subsection, the amendments made by such paragraphs shall not apply to such purchase unless such corporation elects (at such time and in such manner as the Secretary of the Treasury or his delegate may by regulations prescribe) to have the amendments made by such paragraphs apply. (1) AMENDMENTS RELATED TO SECTION 226.—
26 USC 338 note.
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(1) AMOUNT CONSTITUTING DIVIDEND.—Paragraph (2) of section
304(b) (relating to amount constituting dividend) is amended to 26 USC 304. read as follows: "(2) AMOUNT CONSTITUTING DIVIDEND.—In the case of any acquisition of stock to which subsection (a) applies, the determination of the amount which is a dividend (and the source thereoD shall be made as if the property were distributed— "(A) by the acquiring corporation to the extent of its earnings and profits, and "(B) then by the issuing corporation to the extent of its earnings and profits." o^': •; '<•'-. (2) COORDINATION WITH SECTION 351.—Subparagraph (A) of section 304(b)(3) (relating to coordination with section 351) is amended by striking out "(and not part III)" and inserting in . v& i lieu thereof "(and not section 351 and not so much of sections 357 and 358 as relates to section 351)". (3) CERTAIN ASSUMPTIONS OF LIABILITY.—
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(A) The first sentence of clause (i) of section 304(b)(3)(B) (relating to certain assumptions of liability, etc.) is amended by striking out "Subsection (a)" and inserting in lieu thereof "In the case of an acquisition described in section 351, subsection (a)". (B) Subparagraph (B) of section 304(b)(3) (relating to coordination with section 351) is amended by adding at the end thereof the following new clause: "(iii) CLAUSE (i) DOES NOT APPLY TO STOCK ACQUIRED
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FROM RELATED PERSON EXCEPT WHERE COMPLETE TERMI-
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NATION.—Clause (i) shall apply only to stock acquired by the transferor from a person— "(I) none of whose stock is attributable to the transferor under section 318(a) (other than paragraph (4) thereof), or "(II) who satisfies rules similar to the rules of section 302(c)(2) with respect to both the acquiring and the issuing corporations (determined as if such person were a distributee of each such corporation)."
(4) DISTRIBUTIONS INCIDENT TO FORMATION OF BANK HOLDING
COMPANIES.—Subparagraph (C) of section 304(b)(3) (relating to distributions incident to formation of bank holding companies) is amended by adding at the end thereof the following new
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