96 STAT. 2404 26 USC 1232.
PUBLIC LAW 97-448—JAN. 12, 1983 (C)(i) The next to the last sentence of section 1232(b)(2) (defining issue price) is amended by striking o u t "(other than a bond or other evidence of indebtedness or a n investment u n i t issued pursuant to a plan of reorganization within the m e a n i n g of section 368(a)(1) or a n insolvency reorganization within the m e a n i n g of section 371 or 374)'. (ii) Subsection (b) of section 1232 is amended by adding a t the end thereof the following new paragraph: "(4) SPECIAL RULE FOR EXCHANGE O F BONDS I N REORGANIZATIONS.— "(A) IN GENERAL.—If—
"(i) any bond is issued pursuant to a p l a n of reorganization within the m e a n i n g of section 368(a)(1) for a n other bond (hereinafter in this paragraph referred to a s the 'old bond'), and "(ii) the fair m a r k e t value of the old bond is less than its adjusted issue price, the n, for purposes of the n e x t to the last sentence of paragraph (2), the fair m a r k e t v a l u e of the old bond shall be t r e a t e d a s equal to its adjusted issue price. "(B) DEFINITIONS.—For purposes of this paragraph — "(i) BOND.—The term 'bond' includes any other evidence of indebtedness and a n investment unit, "(ii) ADJUSTED ISSUE PRICE.—
"(I) IN GENERAL.—The adjusted issue price of the old bond is its issue price, increased by the portion of any original issue discount previously includible in the gross income of any holder (without r e g a r d to subsection (a)(6) or (b)(4) of section 1232A (or the corresponding provisions of prior law)). "(II) SPECIAL RULE FOR APPLYING SECTION 163(e).—
^^fY^ ^^^^ note.
26 USC 1232 "^ote.
For purposes of section 163(e), the adjusted issue price of the old bond is its issue price, increased by any original issue discount previously allowed a s a deduction." (iii^ ^^^ purposes of paragraph (4) of section 1232(b) of the I n t e r n a l Revenue Code of 1954 (as added by clause (ii)), any insolvency reorganization within the m e a n i n g of section 371 or 374 of such Code shall be t r e a t e d as a reorganization within the m e a n i n g of section 368(a)(1) of such Code. (iv) The amendments m a d e by this subparagraph shall apply to evidences of indebtedness issued after December 13, 1982; except that such amendments shall not apply to any evidence of indebtedness issued after such date pursuant to a w r i t t e n c o m m i t m e n t which w a s binding on such
date and at all times thereafter. Ante, p. 505.
26 USC 415 note. ^pte, p.509.
26 USC 72 note.
(10) AMENDMENT RELATED TO SECTION 2 3 5. — S e c t i o n 235(g)(5) of
gu^h Act is amended by striking out "section 253" and inserting in lieu thereof "section 242". (11) AMENDMENT RELATED TO SECTION 236.—Subsection (c) of section 236 of the Tax Equity and Fiscal Responsibility Act of 1982 (relating to effective date) is amended by adding at the end thereof the following new paragraph: "(3) TREATMENT OF CERTAIN RENEGOTIATIONS.—If—
"(A) the taxpayer after August 13, 1982, and before September 4, 1982, borrows money from a government plan (as
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