Page:United States Statutes at Large Volume 85.djvu/49

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PUBLIC LAW 92-000—MMMM. DD, 1971

85 STAT. ]

PUBLIC LAW 92-9-APR. 1, 1971

19

or produced in the United States acquired by such corporation for leasing, are acquired and carried solely out of— " (A) the proceeds of the sale (including a sale in a transaction described in section 4919(a)(1)) by such corporation H use 491^9. (or by a domestic corporation described in section 4912(b)(3) which is a member of a controlled group, as defined in section 48 (c)(3)(C), of which such corporation is a member) of debt 83 Stat. 603. obligations of such corporation (or such domestic corporation) to persons other than— "(i) a United States person (not including a foreign branch of a domestic corporation or of a domestic partnership, if such branch is engaged in the commercial banking business and acquires such debt obligations in the ordinary course of such commercial banking business) j "(ii) a foreign partnership in which such corporation (or one or more includible corporations in an affiliated group, as defined in section 1504, of which such corpora- 68A Stat. 369. tion is a member) owns directly or indirectly (within the meaning of section 4915(a)(1)) 10 percent or more 78 Stat. 8 24. of the profits interest, or "(iii) a foreign corporation^ if such corporation (or one or more includible corporations in an affiliated group, as defined in section 1504, of which such corporation is a member) owns directly or indirectly (within the meaning of section 4915(a)(1)) 10 percent or more of the total combined voting power of all classes of stock of such foreign corporation, except to the extent such foreign corporation has, after having given advance notice to the Secretary or his delegate, sold its debt obligations to persons other than persons described in clauses (i) and (ii) and this clause and is using the proceeds of the sale of such debt obligations to acquire the debt obligations of such corporation (or such other domestic corporation), " (B) the proceeds of payment for stock, or a contribution to the capital of such corporation, if the payment or contribution was derived from the sale of debt obligations by one or more members of a controlled group (as defined in section 4 8 (c)(3)(C)) of which such corporation is a member (or by a corporation which would be such a member if it were a domestic corporation) to persons other than persons described in clauses (i), (ii), and (iii) of subparagraph (A) and such debt obligations, if acquired by United States persons, would be subject to the tax imposed by section 4911, 83^star*26*2°^ " (C) retained earnings and reserves of such corporation to the extent attributable to the conduct of the lending or financing business outside the United States, or " (D) trade accounts and accrued liabilities, to the extent attributable to the conduct of the lending or financing business outside the United States, which are payable by such corporation within 1 year (3 ^ears in the case of tax liabilities) from the date they were incurred or accrued, and which arise in the ordinary course of the trade or business of the corporation otherwise than from borrowing; "(3) such corporation does not acquire any stock of foreign issuers or of domestic corporations or domestic partnerships other than stock of one or more members of a controlled group (as defined in section 4 8 (c)(3)(C)) of which such corporation is a member (or of a corporation which would be a member if it were 75-432 O - 72 - 4