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.
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