103 STAT. 2334 PUBLIC LAW 101-239—DEC. 19, 1989 (2) Paragraph (2) of section 351(g) is amended by striking "stock, securities, or property" and inserting "stock or prop- erty". 26 USC 351 note. (c) EPFECTIVE DATE.— (1) IN GENERAL.— Except as provided in this subsection, the amendments made by this section shall apply to transfers after October 2, 1989, in taxable years ending after such date. (2) BINDING CONTRACT. —The amendments made by this sec- 4i tion shall not apply to any transfer pursuemt to a written . „ binding contract in effect on October 2, 1989, and at all times thereafter before such transfer. (8) CORPORATE TRANSFERS. — In the case of property trans- ferred (directly or indirectly through a partnership or other- wise) by a C corporation, paragraphs (1) and (2) shall be applied by substituting "July 11, 1989'^ for "October 2, 1989'. The preceding sentence shall not apply where the corporation meets the requirements of section 1504(a)(2) of the Internal Revenue Code of 1986 with respect to the transferee corporation (and where the transfer is not part of a plan pursuant to which the transferor subsequently fails to meet such requirements). SEC. 7204. PROVISIONS RELATED TO REGULATED INVESTMENT COMPA- NIES. (a) REQUIREMENT TO DISTRIBUTE 98 PERCENT OF ORDINARY INCOME. — (1) IN GENERAL. —Subparagraph (A) of section 4982(b)(1) (defin- ing required distribution) is amended by striking "97 percent" and inserting "98 percent". 26 USC 4982 (2) EFFECTIVE DATE.— The amendment made by paragraph (1) ^o*®- shall apply to calendar years ending after July 10, 1989. (b) TREATMENT OF CERTAIN MUTUAL FUND LOAD CHARGES.— (1) IN GENERAL.— Section 852 (relating to taxation of regulated investment companies and their shareholders) is amended by adding at the end thereof the following new subsection: " (f) TREATMENT OF CERTAIN LOAD CHARGES. — "(1) IN GENERAL.— I f^ "(A) the taxpayer incurs a load charge in acquiring stock in a regulated investment company and, by reason of incur- ring such charge or making such acquisition, the taxpayer acquires a reinvestment right, (B) such stock is disposed of before the 91st day after the date on which such stock was acquired, and "(C) the taxpayer subsequently acquires stock in such regulated investment company or in another regulated investment company and the otherwise applicable load charge is reduced by reason of the reinvestment right, the load charge referred to in subparagraph (A) (to the extent it does not exceed the reduction referred to in subparagraph (C)) shall not be taken into account for purposes of determining the amount of gain or loss on the disposition referred to in subpara- graph (B). To the extent such charge is not taken into account in determining the amount of such gain or loss, such charge shall be treated as incurred in connection with the acquisition re- ferred to in subparagraph (C) (including for purposes of reapplying this paragraph). "(2) DEFINITIONS AND SPECIAL RULES.— For purposes of this subsection—
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