PUBLIC LAWS-CH. 393-JULY 28, 1939 Continuation of paymentsduring pendency of proceed- ing. Proviso. Payments not to constitute a prefer- ence. Dismissal for non- payment. Adjustments to con- form to approved plan. Deposit, etc., of security. Tax provisions. Ante, pp. 195, 196, 424,425, 862, 883. I. R. C. §§ 1801, 1802, 3481, 3482 . Income, gain, etc., with respect to ad- justment of indebted- ness. Transmittal of cop- ies of papers to Secre- tary of Treasury. Notice of any or- der affecting Federal claims to Treasury. "SEc. 728. Without prejudice to existing rights of all creditors, including those affected by the plan, and as a condition to the approval of any plan by the special court, the petitioner, from and after the filing of the petition with the court and until the making of a final order by the special court approving a plan or dismissing the petition, shall continue to make or tender payment to all creditors affected by the plan of sums currently payable to such creditors equal to the amounts proposed to be paid to such creditors under the plan: Provided, That the making of such payments shall not constitute a preference within the meaning of the Bankruptcy Act, nor shall acceptance of such payments constitute an acceptance of a plan. If, from and after the filing of the petition with the special court, there shall be any failure to make or tender such payments, the special court, unless there is good cause shown for the failure, shall dismiss the proceedings. In finally approving any plan, the court may make or require to be made such adjustments with respect to said payments or any of them as may be necessary to make the same conform to the provisions of said plan as finally approved. "SEC. 729. In providing for any such payments the petitioner may require any bond or other security, including interest coupons affected by such payments to be presented to or deposited with a paying agent or depositary named by the petitioner for appropriate stamp- ing to show the amounts of such payment. " AR TICLE VI--TAX PROVISIONS "SEC. 735. The provisions of Sections 1801, 1802, 3481, and 3482 of the Internal Revenue Code and any amendments thereto, unless specifically providing to the contrary shall not apply to the issuance, transfer, or exchange of securities or the making or delivery of con- veyances to make effective any plan of adjustment confirmed under the provisions of this chapter. No income, gain, or profit taxable under any law of the United States or of any State, now in force or hereafter enacted, shall in respect to the adjustment of the indebted- ness of any petitioner in a proceeding under this chapter be deemed to have accrued to or to have been realized by such petitioner by reason of a modification of or cancelation in whole or in part of any of the indebtedness of the petitioner affected by a proceeding under this chapter. "SEC. 736. In addition to the notices elsewhere expressly provided, the clerk of the court in which any proceedings under this chapter are pending shall forthwith transmit to the Secretary of the Treasury copies of- '(1) Every petition filed under this chapter- "(2) The orders approving or dismissing petitions; "(3) The orders approving plans as filed or as modified, together with copies of such plans as approved; "(4) The decrees approving and confirming plans and the adjust- ments provided thereby, together with copies of such plans as approved; "(5) The injunctions or other orders made under section 726 of this chapter; "(6) The orders dismissing proceedings under this chapter; and (7) Such other papers filed in the proceedings as the Secretary of the Treasury may request or which the court may direct to be transmitted to him. "SEC. 737. Any order fixing the time for confirming a plan which affects claims or stock of the United States shall include a notice of not less than thirty days to the Secretary of the Treasury. 1140 [53 STAT.