100 STAT. 2262
PUBLIC LAW 99-514—OCT. 22, 1986 "(ii) stock is received by any person in satisfaction of t a right to receive a pecuniary bequest, or "(iii) stock is acquired by a person pursuant to any divorce or separation instrument (within the meaning of section 71(b)(2)), such person shall be treated as owning such stock during the period such stock was owned by the person from whom it was acquired.
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"(C)
SPECIAL RULE FOR EMPLOYEE STOCK OWNERSHIP
"i.- J" - P L A N S. —
"(i) IN GENERAL.—Except as provided in clause (ii), * -' the acquisition of employer securities (within the meaning of section 409(1)) by— ^ -' ' ' "(I) a tax credit employee stock ownership plan or an employee stock ownership plan (within the '^- KJ/./ ^'meaningofsection 4975(e)(7)), or "(II) a participant of any such plan pursuant to ^' " the requirements of section 409(h), '•' „ shall not be taken into account in determining whether
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" an ownership change has occurred. '
"(ii)
Subclause (I) of clause (i) shall not apply to any acquisition unless— "(I) immediately after such acquisition the plan holds stock meeting the requirements of section ^- • 1042(b)(2), except that such section shall be applied by substituting '50 percent' for *30 percent', and "(II) the plan meets requirements similar to the requirements of section 409(n).
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"(D) CERTAIN CHANGES IN PERCENTAGE OWNERSHIP WHICH ARE ATTRIBUTABLE TO FLUCTUATIONS IN VALUE NOT TAKEN
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INTO ACCOUNT.—Except as provided in regulations, any change in proportionate ownership which is attributable solely to fluctuations in the relative fair market values of differeat classes of stock shall not be taken into account.
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OWNERSHIP AND ALLOCATION REQUIREMENTS.—
"(4) REDUCTION IN VALUE WHERE SUBSTANTIAL NONBUSINESS
ASSETS.— "(A) IN GENERAL.—If, immediately after an ownership change, the new loss corporation has substantial ^, nonbusiness assets, the value of the old loss corporation ,y shall be reduced by the excess (if any) of— "(i) the fair market value of the nonbusiness assets of jf-. the old loss corporation, over
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"(ii) the nonbusiness asset share of indebtedness for c,, 5 which such corporation is liable. "(B)
CORPORATION HAVING
SUBSTANTIAL NONBUSINESS
ASSETS.—For purposes of subparagraph (A)— "(i) IN GENERAL.—The old loss corporation shall be 3'*,, treated as having substantial nonbusiness assets if at least V of the value of the total assets of such corporab ...r.. tion consists of nonbusiness assets. "(ii) EXCEPTION FOR CERTAIN INVESTMENT ENTITIES.—
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A regulated investment company to which part I of subchapter M applies, a real estate investment trust to which part II of subchapter M applies, or a real estate mortgage pool to which part IV of subchapter M ap-
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