110 STAT. 1834 PUBLIC LAW 104-188—AUG. 20, 1996 (4) Paragraph (2) of section 4978(b) is amended by striking subparagraph (A) and all that follows and inserting the following: "(A) first from qualified securities to which section 1042 applied acquired during the 3-year period ending on the date of the disposition, beginning with the securities first so acquired, and "(B) then from any other employer securities. If subsection (d) applies to a disposition, the disposition shall be treated as made from employer securities in the opposite order of the preceding sentence.". (5)(A) Section 4978B (relating to tax on disposition of employer securities to which section 133 applied) is hereby repealed. (B) The table of sections for chapter 43 is amended by striking the item relating to section 4978B. (6) Subsection (e) of section 6047 is amended by striking paragraphs (1), (2), and (3) and inserting the following new paragraphs: "(1) any employer maintaining, or the plan administrator (within the meaning of section 414(g)) of, an employee stock ownership plan which holds stock with respect to which section 404(k) applies to dividends paid on such stock, or "(2) both such employer or plan administrator,". (7) Subsection (f) of section 7872 is amended by striking paragraph (12). (8) The table of sections for part III of subchapter B of chapter 1 is amended by striking the item relating to section 133. 26 USC 133 note. (c) EFFECTIVE DATE.— (1) IN GENERAL.— The amendments made by this section shall apply to loans made after the date of the enactment of this Act. (2) REFINANCINGS. —The amendments made by this section shall not apply to loans made after the date of the enactment of this Act to refinance securities acquisition loans (determined without regard to section 133(b)(1)(B) of the Internal Revenue Code of 1986, as in effect on the day before the date of the enactment of this Act) made on or before such date or to refinance loans described in this paragraph if— (A) the refinancing loans meet the requirements of section 133 of such Code (as so in effect), (B) immediately after the refinancing the principal amount of the loan resulting from the refinancing does not exceed the principal amount of the refinanced loan (immediately before the refinancing), and (C) the term of such refinancing loan does not extend beyond the last day of the term of the original securities acquisition loan. For purposes of this paragraph, the term "securities acquisition loan" includes a loan from a corporation to an employee stock ownership plan described in section 133(b)(3) of such Code (as so in effect). (3) EXCEPTION. — Any loan made pursuant to a binding written contract in effect before June 10, 1996, and at all times thereafter before such loan is made, shall be treated
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