text:
Page:United States Statutes at Large Volume 85.djvu/37

 PUBLIC LAW 92-5-MAR. 17, 1971

85 STAT.]

'TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY B E N E F I T S — C o n t i n u e d "I (Primary insurance benefit under 1939 Act, as modified)

(Primary insurance amount under 1969 Act)

III

IV

V

(Average monthly wage)

(Primary insurance amount)

(Maximum family benefits)

The amount referred to in the preceding paragraphs of this subsection shall be—

And the maximum amount of benefits payable (as provided In sec. 203(a)) on the basis of his wages and selfemployment income shall be—

II

If an individual's primary insurance benefit (as determined under subsec. (d)) is -

At least- -

(. »,.>7^

But not more than—

Or his primary Insurance amount (as determined under subsec. (c)) is—

144.70 146.20 147.60 148.90 160.40 161. 70 163.00 164.60 166.90 157.40 168.60 160.00 161.60 162.80 164.30 166.60 166.90 168.40 169.80 171.30 172.60 173.90 176.40 176. 70 178.20 179.40 180. 70 182.00 183.40 184.60 185.90 187.30 188.50 189. 80 191. 20 192.40 193. 70 196.00 196.40 197.60 198.90 200.30 201.50 202. 80 204.20 205.40 206.70 208.00 209.30 210. 60 211.90 213.30 214. 50 215.80 217.20 218.40 219. 70 220.80 222.00 223.10 224.30 225.40 226.60 227. 70 228.90 230.00 231. 20 232.30 233.50 234.60 235.80

Or his average monthly wage (as determined under subsec. (b)) is—

At least-

292 296 301 306 310 315 320 324 329 334 338 343 348 362 357 362 366 371 376 380 385 390 394 399 404 408 413 418 422 427 432 437 441 446 451 455 460 465 469 474 479 483 488 493 497 502 507 511 516 521 525 530 535 539 544 549 554 557 561 664 568 671 575 678 582 585 589 592 596 699 603

But not more than—•

296 300 305 309 314 319 323 328 333 337 342 347 361 366 361 365 370 376 379 384 389 393 398 403 407 412 417 421 426 431 436 440 445 450 454 469 464 468 473 478 482 487 492 496 501 506 510 515 520 524 529 534 538 543 548 563 556 560 563 567 570 574 577 581 584 588 591 595 598 602 605

169. 20 160.90 162.40 163.80 165.60 166.90 168.30 170.00 171.50 173.20 174.50 176.00 177. 70 179.10 180.80 182.20 183.60 185.30 186.80 188.60 189.80 191.30 193.00 194.40 196.10 197.40 198.80 200.20 201.80 203.10 204.50 206.10 207.40 208.80 210. 40 211.70 213.10 214.50 216.10 217.40 218.80 220.40 221.70 223.10 224.70 226.00 227.40 228.80 230.30 231. 70 233.10 234.70 236.00 237.40 239.00 240.30 241. 70 242.90 244.20 245.50 246.80 248.00 249.30 250.50 251.80 253.00 254.40 255.60 256.90 268.10 259.40

259.60 264.00 268.40 272.00 276.40 280.80 284.30 288.70 293.10 296.60 301.00 305.40 308.90 313.30 317. 70 321.20 325.60 330.00 333.60 338.00 342.40 346.90 360.30 364.70 358.20 362.60 367.00 370.60 374.90 379.30 383.70 385.50 387.70 389.90 391.60 393.80 396.00 397.80 400.00 402.20 404.00 406.20 408.40 410.10 412.30 414.50 416.30 418.50 420.70 422.40 424.60 426.80 428.60 430.80 433.00 435.20 436.50 438.30 439.60 441.40 442.70 444.40 445.80 447.50 448.80 450.60 451.90 453.70 455.00 456.80 458.10

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text:
Page:United States Statutes at Large Volume 85.djvu/38

 PUBLIC LAW 92-5-MAR. 17, 1971

[85 STAT.

" T A B L E FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY B E N E F I T S — C o n t i n u e d "I (Primary insurance benefit under 1939 Act, as modified)

(Primary insurance amount under 1969 Act)

If an individual's primary insurance benefit (as determined under subsec. (d)) i s -

At least—

But not more than—

Or his primary insurance amount (as determined under subsec. (c)) is—

236.90 238.10 239.20 240.40 241.50 242.70 243.80 246.00 246.10 247.30 248.40 249.60 250.70

8 3 Stat. 739. 42 USC 4 0 3. 42 USC 4 0 2, 4 2 3.

42 USC 422, 402.

III

IV

V

(Average monthly wage)

(Primary insurance amount)

(Maximum family benefits)

The amount referred to in the preceding paragraphs of this subsection shall be—

And the maximum amount of benefits payable (as provided in sec. 203(a)) on the basis of his wages and selfemployment income shall be—

II

Or his average monthly wage (as determined under subsec. (b)) is—

At least—

606 610 613 617 621 624 628 631 635 638 642 645 649 653 667 661 666 671 676 681 686 691 696 701 706 711 716 721 726 731 736 741 746

But not more than—

609 612 616 620 623 627 630 634 637 641 644 648 652 656 660 666 670 676 680 686 690 696 700 706 710 716 720 726 730 736 740 745 750

260.60 262.00 263.20 264.50 266.70 267.00 268.20 269.50 270.80 272.10 273. 30 274.60 276.80 276.60 277.40 278.40 279.40 280.40 281.40 282.40 283.40 284.40 286.40 286.40 287.40 288.40 289.40 290.40 291.40 292.40 293.40 294.40 295.40

459.80 461.20 462.90 464.70 466.00 467.80 469.40 471. 70 473.90 476.20 478.30 480.60 482.70 484.10 485.50 487.20 489.00 490.70 492.50 494.20 496.00 497. 70 499.50 501.20 503.00 504.70 506.60 508.20 610.00 511. 70 513.60 515.20 517.00".

(b) Section 203(a) of such Act is amended by striking out paragraph (2) and inserting in lieu thereof the following: "(2) when two or more persons were entitled (without the application of section 2 0 2 (j)(l) and section 223(b)) to monthly benefits under section 202 or 223 for January 1971 on the basis of the wages and self-employment income of such insured individual and at least one such person was so entitled for December 1970 on the basis of such wages and self-employment income, such total of benefits for January 1971 or any subsequent month shall not be reduced to less than the larger of— " (A) the amount determined under this subsection without regard to this paragraph, or " (B) an amount equal to the sum of the amounts derived by multiplying the benefit amount determined under this title (including this subsection, but without the application of section 222(b), section 202(q), and subsections (b), (c), and (d) of this section), as in effect prior to the amendment of this subsection in March 1971, for each such person for such month, by 110 percent and raising each such increased amount, if it is not a multiple of $0.10, to the next higher multiple of $0.10;

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 85.djvu/39

 85 STAT. ]

PUBLIC LAW 92-5-MAR. 17, 1971

but in any such case (i) paragraph (1) of this subsection shall not be applied to such total of benefits after the application of subparagraph (B), and (ii) if section 202(k)(2)(A) was applicable in the case of any such benefits for January 1971, and ceases to apply after such month, the provisions of subparagraph (B) shall be applied, for and after the month in which section 202(k)(2) (A) ceases to apply, as though paragraph (1) had not been applicable to such total of benefits for January 1971, or". (c) Section 215i(b)(4) of such Act is amended by striking out "December 1969" each time it appears and inserting in lieu thereof "December 1970". (d) Section 215(c) of such Act is amended to read as follows:

42 USC 402.

8 3 Stat. 740. 42 USC 415.

"Primary Insurance Amount Under 1969 Act " (c)(1) For the purposes of column II of the table appearing in subsection (a) of this section, an individual's primary insurance amount shall be computed on the basis of the law in effect prior to the amendment of this subsection in March 1971. " (2) The provisions of this subsection shall be applicable only in the case of an individual who became entitled to benefits under section 202(a) or section 223 before the date on which this subsection was amended in March 1971, or who died before such date." (e) The amendments made by this section shall apply with respect to monthly benefits under title II of the Social Security Act for months after December 1970 and with respect to lump-sum death payments under such title in the case of deaths occurring in and after the month in which this Act is enacted. (f) If an individual was entitled to a disability insurance benefit under section 223 of the Social Security Act for December 1970 on the basis of an application filed in or after the month in which this Act is enacted, and became entitled to old-age insurance benefits under section 202(a) of such Act for January 1971, then, for purposes of section 215 (a)(4) of the Social Security Act (if applicable), the amount in column IV of the table appearing in such section 216(c) for such individual shall be the amount in such column on the line on which in column II appears his primary insurance amount (as determined under section 215(c) of such Act) instead of the amount in column IV equal to the primary insurance amount on which his disability insurance benefit is based. (g) Notwithstanding the provisions of sections 2(a) (10), 402(a) (7), 1002(a)(8), 1402(a)(8), and 1602(a) (13) and (14) of the Social Security Act, each State, in determining need for aid or assistance under a State plan approved under title I, X, X IV, or X VI, or part A of title IV, of such Act, may disregard (and the plan may be deemed to require the State to disregard), in addition to any other amounts which the State is required or permitted to disregard in determining such need, any amount paid to an individual under title II of such Act (or under the Railroad Retirement Act of 1937 by reason of the first proviso in section 3(e) thereof), in any month after the month in which this Act is enacted, to the extent that (1) such payment is attributable to the increase in monthly benefits under the old-age, survivors, and disability insurance system for January, February, March, or April 1971 resulting from the enactment of this title, and (2) the amount of such increase is paid separately from the rest of the monthly benefit of such individual for January, February, March, or April 1971.

Ante, p, 6.

^° use'421' ^^ ^^^^ 42 USC' 4o i.

64 Stat. 482.

J^^ Stat. 357,

QQ'^2 ^2^0^2^1352 1382.

go^star^ioso^' 45 USC 228c.

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text:
Page:United States Statutes at Large Volume 85.djvu/40

 10

PUBLIC LAW 92-5-MAR. 17, 1971

[85 STAT.

INCREASE IN BENEFITS FOR CERTAIN INDIVIDUALS AOE 7 2 AND OA'ER

llvicli?'

42 USC 428.

Effective date.

42 USC 4 ^ ^ '

SEC. 202. (a)(1) Section 22r(a) of the Social Security Act is amended by striking out "$46" and inserting in lieu thereof "48.30", and by striking out "$23" and inserting in lieu thereof "$24.20". (2) Section 227(b) of such Act is amended by striking out "$46" and inserting in lieu thereof "$48.30". (b)(1) Section 228(b)(1) of such Act is amended by striking out "$46" and inserting in lieu thereof "$48.30". (2) Section 228(b)(2) of such Act is amended by striking out "$46" and inserting in lieu thereof "$48.30", and by striking out "$23" and inserting in lieu thereof "$24.20". (3) Section 228(c)(2) of such Act is amended by striking out "$23" and inserting in lieu thereof "$24.20". (4) Section 228(c)(3)(A) of such Act is amended by striking out "$46" and inserting in lieu thereof "$48.30"". (5) Section 228(c)(3)(B) of such Act is amended by striking out "$23" and inserting in lieu thereof "$24.20"". (c) The amendments made by subsections (a) and (b) shall apply with respect to monthly benefits under title II of the Social Security ^ c t for months after December 1970. INCREASE o r EARNINGS COUNTED FOR BENEFIT AND TAX PURPOSES

8 i^tlTisT^' SEC. 203. (a)(1)(A) Section 209(a)(5) of the Social Security Act is 42 USC 409. amended by inserting "and prior to 1972" after "1967". (B) Section 209(a) of such Act is further amended by adding at the end thereof the following new paragraph: "(6) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $9,000 with respect to employment has been paid to an individual during any calendar year after 1971, is paid to such individual during any such calendar year;". g/staussi"^^' (2)(A) Section 211(b)(1)(E) of such Act is amended by inserting 42 USC 411. "and beginning prior to 1972" after "1967", and by striking out "; or" and inserting in lieu thereof "; and". (B) Section 211(b)(1) of such Act is further amended by adding at the end thereof the following new subparagraph: " (F) For any taxable year begmning after 1971, (i) $9,000, minus (ii) the amount of the wages paid to such individual during the taxable year; or". ?2 Ss^c 4^^3.• (3)(A) Section 213(a)(2) (ii) of such Act is amended by striking out "after 1967" and inserting in lieu thereof "after 1967 and before 1972, or $9,000 in the case of a calendar year after 1971". (B) Section 213(a)(2) (iii) of such Act is amended by striking out "after 1967" and inserting in lieu thereof "after 1967 and beginning before 197'2, or $9,000 in the case of a taxable year beginning after 1971". 42 USC 415. (4) Section 215(e)(1) of such Act is amended by striking out "and the excess over $7,800 in the case of any calendar year after 1967" and inserting in lieu thereof "the excess over $7,800 in the case of any calendar year after 1967 and before 1972, and the excess over $9,000 in the case of any calendar year after 1971". 81 Stat. 835. (b)(1)(A) Section 1402(b)(1)(E) of the Internal Revenue Code 26 USC 1402. of 1954 (relating to definition of self-employment income) is amended by inserting "and beginning before 1972" after "1967", and by striking out "; or" and inserting in lieu thereof "; and".

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Page:United States Statutes at Large Volume 85.djvu/41

 85 STAT. ]

PUBLIC LAW 92-5-MAR. 17, 1971

11

(B) Section 1402(b)(1) of such Code is further amended by adding ^ 1^1^^^!835!**' at the end thereof the following new subparagraph: 26 USC 1402. " (F) for any taxable year beginning after 1971, (i) $9,000, minus (ii) the amount of the Avages paid to such individual during the taxable year; or". (2) Section 3121(a)(1) of such Code (rehiting to definition of sistat. 835. wages) is amended by striking out "$7,800" each phice it appears and inserting in lieu thereof "$9,000''. (3) The second sentence of section 3122 of such Code (relating to Federal service) is amended by striking out "$7,800"' and inserting in lieu thereof "$9,000*'. (4) Section 3125 of such Code (relating to returns in the case of governmental employees in Guam, American Samoa, and the District of Columbia) is amended by striking out "$7,800" where it appears in subsections (a), (b), and (c) and inserting in lieu thereof "$9,000". (5) Section 6413(c)(1) of such Code (relating to special refunds of employment taxes) is amended— (A) by inserting "and prior to the calendar year 1972" after "after the calendar year 1967"; (B) by inserting after "exceed $7,800," the following: "or (E) during any calendar year after the calendar year 1971, the wages received by him during such year exceed $9,000,"; and (C) by inserting before the period at the end thereof the following: "and before 1972, or which exceeds the tax w4th respect to the first $9,000 of such wages received in such calendar year after 1971". (6) Section 6413(c)(2)(A) of such Code (relating to refunds of employment taxes in the case of Federal employees) is amended by striking out "or $7,800 for any calendar year after 1967" and inserting in lieu thereof "$7,800 for the calendar year 1968, 1969, 1970, or 1971, or $9,000 for any calendar year after 1971". (7) Section 6654(d)(2)(B) (ii) of such Code (relating to failure by so Stat. 62. individual to pay estimated income tax) is amended by striking out "$6,600" and inserting in lieu thereof "$9,000". (c) The amendments made by subsections (a)(1) and (a)(3)(A), Effective dates. and the amendments made by subsection (b) (except paragraphs (1) and (7) thereof), shall apply only with respect to remuneration paid after December 1971. The amendments made by subsections (a)(2), (a)(3)(B), (b)(1), and (b)(7) shall apply only with respect to taxable years beginning after 1971. The amendment made by subsection (a)(4) shall apply only with respect to calendar years after 1971. CHAXGES IX TAX SCHEDULES

SEC. 204. (a)(1) Section 3101(a) of such Code (relating to rate of tax on employees for purposes of old-age, survivors, and disability insurance) is amended by striking out "and" at the end of paragraph (3), and by striking out paragraph (4) and inserting in lieu thereof the following: "(4) with respect to wages received during the calendar years 1973, 1974, and 1975, the rate shall be 5.0 percent; and " (5) with respect to wages received after December 31, 1975, the rate shall be 5.15 percent." (2) Section 3111(a) of such Code (relating to rate of tax on employers for purposes of old-age, survivors, and disability insurance) is amended by striking out "and" at the end of paragraph (3), and by striking out paragraph (4) and inserting in lieu thereof the following: " (4) with respect to wages paid during the calendar years 1973, 1974, and 1975, the rate shall be 5.0 percent; and

ai Stat. 836.

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text:
Page:United States Statutes at Large Volume 85.djvu/42

 12

PUBLIC LAW 92-6-MAR. J9, 1971

Effective date.

[85 STAT.

"(5) with respect to wages paid after December 31, 1975, the rate snail be 5.15 percent." (b) The amendments made by subsection (a)(1) shall apply only with respect to taxable years beginning after December 31, 1971. The remaining amendments made by this section shall apply only with respect to remmieration paid after December 31, 1971. Approved March 17, 1971.

Public Law 92-6 March 19, 1971 [H. J. R e s. 16]

National Week of Concern for Prisoners of War/ Missing in Action. Designation authorization. 6 UST 3316.

JOINT RESOLUTION To authorize the President to designate the period beginning March 21, 1971, as "National Week of Concern for Prisoners of War/Missing in Action".

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That to demonstrate our support and concern for the more than one thousand five hundred Americans listed as prisoners of war or missing in action in Southeast Asia, and to forcefully register our protest over the inhumane treatment these men are receiving at the hands of the North Vietnamese, in violation of the Geneva Convention, the President is hereby authorized and requested to issue a proclamation designating the period beginning March 21, 1971, and ending March 27, 1971 as "National Week of Concern for Prisoners of War/Missing in Action", calling upon the people of the United States to observe such week with appropriate ceremonies and activities. Approved March 19, 1971.

Public Law 92-7 „

^,«,o7,

JOINT RESOLUTION

March 30, 197 1

[H. J. Res. 468] ' Continuing appropriations, 1971. 84 Stat. 335, 694, 9 6 9, 1893.

Restriction.

Making certain further continuing appropriations for the fiscal year 1971, and for other purposes.

Resolved by the Senate and House of Representatives of the United States of AmeHca hi Congress assembled, That clause (c) of section 102 of the joint resolution of June 29, 1970 (Public Law 91-294, as amended by Public Laws 91-870, 91-454, and 91-645), is hereby further amended by striking out "March 30, 1971" and inserting in lieu thereof "June 30, 1971": Provided, That projects and activities (other than those financed under the appropriation "Civil Supersonic Aircraft Development") provided for in the Department of Transportation and Related Agencies Appropriation Act, 1971 (H.R. 17755, Ninety-first Congress), may be conducted at a rate for operations, and to the extent and in the manner, provided for in such Act as modified by the House of Representatives on December 15, 1970. SEC. 2. None of the funds provided by this joint resolution shall be available for the execution of a program for commercial production of a civil supersonic aircraft. Approved March 30, 1971.

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Page:United States Statutes at Large Volume 85.djvu/43

 13

PUBLIC LAW 92-9-APR. 1, 1971

85 STAT.]

Public Law 92-8 JOINT RESOLUTION

», »,, i,a7, March 31, 1971

To provide a temporary extension of certain provisions of law relating to interest [s. j. Res. ss] rates and cost-of-living stabilization. Resolved by the Senate and House of Representatives of the United ^^ ^^^^^ ^^^^^ States of AmeHca in Congress assembled, and cost-of-uving stabilization. i:K«iri..\'JI(>N

or

I N T E R E S T RATES ON DEPOSITS A N D SHARE ACCOUNTS I N

'ftension.

FINANCIAL INSTITUTIONS

SECTION 1. Section 7 of the Act of September 21, 1966, as amended Post, p. 38. (Public Law 91-151; 83 Stat. 371), is amended by striking out 12 USC 461 note. "March 22, 1971" and inserting in lieu thereof "June 1, 1971". AUTHORITY TO APPLY PRICE AND WAGE CONTROLS

SP:C. 2. Section 206 of the Economic Stabilization Act of 1970 (title II of Public Law 91-379), as amended (Public Law 91-558), is ue&fTos^up^.ziu amended by striking out "March 31, 1971" and "April 1, 1971" and 743,' 12 inserting in lieu thereof "May 31, 1971" and "June 1, 1971", note. u s e 1904 respectively. Approved March 31, 1971.

Public Law 92-9 AN ACT To provide a n extension of the interest equalization tax, and for other purposes.

Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

of the

SECTION 1. SHORT TITLE, ETC.

(a) SHORT TITLE.—This Act may be cited as the "Interest Equalization Tax Extension Act of 1971". (b) AMENDMENT OF 1954 CODE.—Whenever in this Act an amendment is expressed in terms of an amendment to a section or other provision, the reference is to a section or other provision of the Internal Revenue Code of 1954. SEC. 2. EXTENSION OF INTEREST EQUALIZATION TAX.

April 1, 1971 [ H. R. 5432] Interest Equalization Tax Extension Act of 1971,,

68A Stat. 3. 26 USC 1 etseq.

Stat. 810; Section 4911(d) is amended, effective with respect to acquisitions 8 378 Stat. 261. made after March 31, 1971, by striking out "March 31, 1971" and inserting in lieu thereof "March 31, 1973".

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Page:United States Statutes at Large Volume 85.djvu/44

 14

PUBLIC LAW 92-9-APR. 1, 1971

[85 STAT.

SEC. 3. OTHER AMENDMENTS. (a) ELECTION TO TREAT CERTAIN DEBT OBLIGATIONS AS SUBJECT TO TAX.—

11 f/<fA'fo\°o zO UoC 4 y i 2.

(1) Section 4912 is amended by adding at the end thereof the p 11

•

1

••

lollowing new subsection: " (c) ELECTION TO SUBJECT CERTAIN DEBT OBLIGATIONS TO T A X. —

81 Stat. 145; 8 3 Stat. 262.

"(1) IN GENERAL.—A domestic corporation or domestic partnership may elect to have its debt obligations— " (A) which are part of a new or original issue, or " (B) which are part of an issue outstanding on the date of the enactment of the Interest Equalization Tax Extension Act of 1971 and are treated under subsection (b)(3) as debt obligations of a foreign obligor, treated as debt obligations of a foreign obligor the acquisition of which by a United States person (other than the issuer) will, notwithstanding any other provision of this chapter, be subject to the tax imposed by section 4911 at the rate applicable on acquisitions of stock under section 4911(b). " (2) ASSUMPTION or OBLIGATIONS.—For purposes of paragraph

83 Stat. 6 0 3.

(1), the assumption by a domestic corporation of debt obligations of an affiliated corporation shall be treated as the issuance of a new or original issue of debt obligations by such domestic corporation. For purposes of this paragraph, a domestic corporation shall be treated as affiliated with another corporation if both corporations are members, or would be members if they were both domestic corporations) of the same controlled group (within the meaning of section 48(c)(3)(C)). " (3) ELECTION.—An election under paragraph (1) with respect to any issue of debt obligations shall be made at such time and in such manner as the Secretary or his delegate may prescribe by regulations, and such election may not be revoked. I n the case of a new or original issue, such election shall be made prior to the issuance (or, in the case of an issue treated as a new or original issue under paragraph (2), prior to the assumption) of any debt obligations of such issue. "(4) INDICATION OR ENDORSEMENT OF TAXABILITY.—In the case of a debt obligation which is part of a new or original issue (other than an issue treated as a new or original issue under paragraph (2)), an election under paragraph (1) shall apply to such debt obligation only if the document evidencing such debt obligation indicates that its acquisition by a United States person is subject to the tax imposed by section 4911 as provided in paragraph (1). In the case of any other debt obligation, an election under paragraph (1) shall apply to such debt obligation only if the document evidencing such debt obligation is marked or endorsed, subject to such regulations as the Secretary or his delegate may prescribe, so as to indicate that its acquisition by a United States person is subject to such tax."

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Page:United States Statutes at Large Volume 85.djvu/45

 85 STAT. ]

PUBLIC LAW 92-9-APR. 1, 1971

15 80 Stat. 1542.

(2) Section 861(a)(1) is amended— (A) by striking out "and" at the end of subparagraph (E), (B) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof ", and", and (C) by adding at the end thereof the following new subparagraph: " (G) interest on a debt obligation which was part of an issue with respect to which an election has been made under section 4912(c) and which, when issued (or treated as issued under section 4912(c)(2)), had a maturity not exceeding 15 years and, when issued, was purchased by one or more underwriters with a view to distribution through resale, but only with respect to interest attributable to periods after the date of such election." (3) The amendments made by this subsection shall take effect on the date of the enactment of this Act. (b) ACQUISITIONS I N CONNECTION W I T H NATIONALIZATION, EXPROPRIATION, E T C. —

(1) Section 4914(b) is amended by adding at the end thereof the following new paragraph:

26 USC'861.

Ante, p. 14.

Effective date.

78 Stat. 813; 81 Stat. 157.

" ( 1 6) ACQUISITION S OF STOCK OR DEBT OBLIGATIONS I N CONNECT I O N WITH NATIONALIZATION, EXPROPRIATION, ETC.—Of StOCk o r

debt obligations of a foreign issuer or obligor, where such acquisition is required as a reinvestment in connection with an actual or threatened nationalization, expropriation, or seizure of property, to the extent provided in subsection (k). " (2) Section 4914 is amended by adding at the end thereof the following new subsection: "(k)

ACQUISITIONS or STOCK OR DEBT OBLIGATIONS I N CONNECTION

W I T H NATIONALIZATION, EXPROPRIATION, ETC.—The tax imposed by

section 4911 shall not apply to the acquisition by a United States person of stock or a debt obligation of a foreign issuer or obligor, to the extent that such acquisition is required as a reinvestment within a foreign country by the terms of a contract of sale to, or a contract of indemnification with respect to the nationalization, expropriation, or seizure by, the government of such country or a political subdivision thereof, or an agency or instrumentality of such government, of property owned within such country or such political subdivision by such United States person, or by a controlled foreign corporation (as defined in section 957) more than 50 percent of the total combined voting power of all classes of stock entitled to vote of which is owned (within the meaning of section 958) by such United States person, but only if such contract was entered into because the government of such country or political subdivision, or such agency or instrumentality— " (A) has nationalized or has expropriated or seized, or has threatened to nationalize or to expropriate or seize, a substantial portion of the property owned within such country or such political subdivision by such United States person or such controlled foreign corporation; or " (B) has taken action which has the effect of nationalizing or of expropriating or seizing, or of threatening to nationalize or to

78 Stat. 809.

76 Stat. 1017.

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Page:United States Statutes at Large Volume 85.djvu/46

 16

PUBLIC LAW 92-9-APR. 1, 1971

78 Stat. 827. 26 USC 4916.

Effective date.

expropriate or seize, a substantial portion of the property so owned. For purposes of this subsection, an instrumentality of the government of a country or a political subdivision thereof includes a corporation or other entity with respect to which such government, or any agency of such government, owns more than 50 percent of the total combined voting power of all classes of stock entitled to vote or, in the case of a corporation or other entity not issuing shares of stock, has the authority to elect or appoint a majority of the board of directors or equivalent body of such corporation or other entity." (3) Section 4916(a) is amended— (A) by inserting "or" after the semicolon at the end of paragraph (2); (B) by striking o u t "; or" at the end of paragraph (3) and inserting in lieu thereof a period; and (C) by striking out paragraph (4). (4) The amendments made by this subsection shall apply with respect to acquisitions made after the date of the enactment of this Act. (c)

s/star^iss^-^' 83 Stat! 263!

Effective date.

68A Stat. 369.

FOREIGN MINERAL FACILITIES.—

(1) Section 4914(c)(5) is amended by adding at the end thereof the following uew sentence: "For purposes of subparagraph (B), if the proceeds of the loan are to be used by the foreign obligor (or by a person controlled by, or controlling, the foreign obligor) for additional facilities, the substantial portion requirement contained in such subparagraph, and the one-half of the percentage of cost requirement contained in the last sentence of such subparagraph, shall be treated as satisfied with respect to such loan if it IS established that an additional amount of ores or minerals (or derivatives thereof) extracted outside the United States by the United States person, or otherwise taken into account for purposes of such subparagraph, will be stored, handled, transported, processed, or serviced in the existing and additional facilities of such foreign obligor or person, and that, with respect to such additional facilities, such additional amount fulfills such substantial portion requirement or such one-half of the percentage of cost requirement, as the case may be." (2) The amendment made by paragraph (1) shall apply with respect to acquisitions made after the date of the enactment of this Act. (d)

79 Stat. 957.

[85 STAT.

SALES OR LIQUIDATIONS OF FOREIGN SUBSIDIARIES.—

(1) Section 4914 (^) (1) is amended— (A) by striking out "all of the outstanding stock, except for qualifying shares, of a foreign corporation" in subparagraph (A) and inserting in lieu thereof "all of the outstanding stock of a foreign corporation held by such United States person (and such includible corporations)"; (B) by striking out "all of the outstanding stock of which, except for qualifying shares, is owned by such United States person (or by one or more such includible corporations)" in subparagraph (B); and (C) by adding at the end thereof (after and below subparagraph (C)) the following new sentence: "Subparagraph (A) or (B) shall apply only if, immediately prior to the sale or liquidation involved, the United States person (or one or more includible corporations in an siffiliated group, as defined in section 1504, of which such person is a member) owns (directly or indirectly) 10 percent or more of the total combined

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voting power of all classes of stock of the foreign corporation; and, for purposes of this sentence, stock owned (directly or indirectly) by or for a foreign corporation shall be considered as being owned proportionately by its shareholders." (2)(A) Section 4914(b) (10) is amended by striking out "WHOLLY OWNED" in the heading, and by striking out "a wholly owned foreign corporation" and inserting in lieu thereof "a foreign corporation". (B) Section 4914(g) is amended by striking out "WHOLLY OWNED" in the heading.

(3) The amendments made by this subsection shall apply with respect to acquisitions made after the date of the enactment of this Act.

17

79 Stat. 957. 26 USC 4914.

78 Stat. 1813. Effective date.

(e) DIRECT INVESTMENTS IN CERTAIN LENDING AND FINANCING OlRPORATTONS.—

(1) Section 4915 is amended— 83 Stat.^ 267. ' (A) by striking out subsection (c)(3), and (B) by adding at the end thereof the following new subsection: "(e) SPECIAL RULE FOR INVESTMENTS IN CERTAIN LENDING AND FINANCING CORPORATIONS.—

"(1) IN GENERAL.—For purposes of this chapter, a corporation described in paragraph (2) shall be treated as a foreign corporation which is not foiTned or availed of for the principal purpose described in subsection (c)(1) with respect to an acquisition of its stock or debt obligations, if it is established to the satisfaction of the Secretary or his delegate, pursuant to regulations prescribed by the Secretary or his delegate, that— " (A)(i) the amounts received by the corporation as a result of the acquisition will not be used to acquire stock of foreign issuers or debt obligations of foreign obligors or utilized in any way outside of the United States, or (ii) the funds used for such acquisition were obtained from sources outside the United States; and " (B) such information and records with respect to the corporation as are necessary for the administration of this chapter will be made available to the Secretary or his delegate. " (2) CORPORATIONS.—The corporations referred to in paragraph (1) are— " (A) a domestic corporation described in section 4920(a) (3)(C),, " (B) a domestic corporation which is a qualified lending and financing corporation (as defined in section 4920(d)) during any period during which an election under section 4920(a) (3B) is in effect, and " (C) a foreign corporation which is a qualified lending and financing corporation (as defined in section 4920(d)) and has given notice to the Secretary or his delegate of its status as such a corporation. "(3) MISUSE OF AMOUNTS RECEIVED.—In any case in which paragraph (1) applied to an acquisition of stock or debt obligations and— " (i) the amounts received by the corf)oration whose stock or debt obligations were acquired as a result of such acquisition are (before the termination date specified in section 4911(d)) used to acquire stock of foreign issuers or debt obligations of foreign obligors or utilized in any other way outside of the United States in violation of the regulations prescribed under paragraph (1), or

81 Stat. 160. Post, p. 18.

^"'e»?• i3.

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78 Stat. 809; 26 USC 49*11.

83 Stat. 264.

PUBLIC LAW 92-9-APR. 1, 1971

[85

STAT.

"(ii) information or records with res])0('t to the corporation, which the Secretary or delegate has determined (before such termination date) necessary for the administration of this chapter, are not, after reasonable iiotice, made avaihible to the Secretary, then liability for the tax imposed by section 4911 shall be incurred by the acquiring corporation (with respect to such acquisition) at the time such amounts are so used or such information or records are not so made available; and the amount of such tax shall be equal to the amount of tax for which the acquiring corporation would have been liable under such section upon its acquisition of the stock or debt obligations involved if paragraph (1) had not applied to such acquisition." (g) Section 4920(a) (3B) is amended to read as follows: " (3B) CERTAIN DOMESTIC LENDING OR FINANCING CORPORATIONS.—

Definitions.

"Qualified lend-

c"^o'raao^n.""^

"(-^) IN GENERAL.—The terms 'foreign issuer', 'foreign obligor', and 'foreign issuer or obligor' also mean a domestic corporation which is a qualified lending or financing corporation (as defined in subsection (d)) and which elects to be treated, for purposes of this chapter, as a foreign issuer and foreign obligor. " (B) ELECTION.—An election under subparagraph (A) shall be made in such manner as the Secretary or his delegate prescribes by regulations. Any such election shall be effective as of the date thereof and shall remain in effect until revoked. If, at any time, the corporation ceases to be a qualified lending or financing corporation, the election shall thereupon be deemed revoked. When an election is revoked, no further election may be made. If an election is revoked, the corporation shall incur liability at the time of such revocation for the tax imposed by section 4911 with respect to all stock or debt obligations which were acquired by it during the period for which the election was in effect and which are held by it at the time of such revocation; and the amount of such tax shall be equal to the amount of tax for which the corporation would be liable under such section if it had acquired such stock or debt obligations immediately after such revocation." (3) Section 4920(d) is amended to read as follows: ^^ (d)

QUALIFIED L E N D I N G AND FINANCING CORPORATIONS.

For pur-

l)Oses of this chapter, the term 'qualified lending or financing corporation' means a corporation— "(1) substantially all of the business of which consists of— " (A) making loans (including the acquisition of obligations arising under a lease which is entered into principally as a financing transaction), " (B) acquiring accounts receivable, notes, or installment obligations arising out of the sale of tangible personal property or the performance of services, " (C) leasing tangible personal property (but only if such leasing accounts for less than 50 pei"cent of its business), " (D) servicing debt obligations, " (E) carrying on incidental activities in comiection with its business described in subparagraphs (A), (B), (C), or (D),or " (F) any combination of the foregoing; "(2) all debt obligations of foreign obligors acquired by such corporation, and all tangible personal property not manufactured

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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

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20

Effective date.

Ante, p. 18«

Ante, p. 17.

a domestic corporation) acquired as paymeiit for stock, or as a contribution to capital, of such corporation; and " (4) such corporation, in a manner satisfactory to the Secretary or his delegate, identifies the certificates representing its stock and debt obligations and maintains such records and accounts and submits such reports and other documents as may be necessary to establish that the requirements of the foregoing paragraphs have been met." (4) The amendments made by paragraph (1) shall apply with respect to acquisitions made after the date of the enactment of this Act. The amendments made by paragraphs (2) and (3) shall take effect on the day after such date. (5) For purposes of section 4920(a) (3B) of the Internal Revenue Code of 1954 (as amended by p a r a ^ a p h (2)) an election made under section 4920(d) of such Code (as in effect on the date of the enactment of this Act) shall be treated as an election made under such section 4920(a) (3B). For purposes of section 4915 (e)(2)(C) of such Code (as amended by paragraph (1)), notice given under section 4915(c)(3) of such Code (as m effect on the date of the enactment of this Act) shall be treated as notice given under section 4915(e)(2)(C). (f) EXTENSION SECURITIES.—

78 Stat. 833. 26 USC 4919.

Effective date.

[85 STAT.

OF

RESALE

PERIOD

FOR

DEALERS

IN

FOREIGN

(1) Section 4919(a) is amended by adding at the end thereof the following new sentence: "The President may by Executive order (which shall be applicable for such period and subject to such conditions as may be specified therein) extend the period of two business days specified in subparagraphs (A) and (B) of paragraph (3) to not to exceed 13 calendar days in the case of acquisitions made for customers and not for investment purposes, but any such extension shall be applicable only in cases where the acquiring dealer has submitted to the Secretary or his delegate in advance a satisfactory procedure for identifying which of his acquisitions are for customers and which are for investment purposes." (2) Section 4919(b)(1) is amended— (A) by striking out the period at the end of clause (B) and inserting in lieu thereof ", and"; and (B) by inserting after clause (B) the following new clause: " (C) in any case to which subparagraph (A) or (B) of subsection (a)(3) applies and which involves a sale or acquisition occurring after the expiration of the two-business-day period specified therein, establishes that the sale or acquisition complied with the applicable Executive order issued under the last sentence of subsection (a) and that the procedure submitted under such sentence was followed." (3) The amendments made by this subsection shall apply with respect to acquisitions made after the date of the enactment of this Act. (g) FAILURE or FOREIGN CORPORATION TO F I L E NOTICE RESPECTING ISSUANCE OF ADDITIONAL SHARES.—

79 Stat. 963.

(1) Section 4920(b)(2) is amended by adding at the end thereof the following new sentence: "Upon application by the issuing corporation within 2 years after the date on which additional shares described in the second sentence of this paragraph were issued, the Secretary or his delegate may waive the 15-day requirement set forth in subparagraph (D)(v) with respect to such additional shares if it is shown that the issuing corporation failed

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PUBLIC LAW 92-9-APR. 1, 1971

to file the notice required by such subparagraph due to inadvertence and not with an intent to avoid the requirements of this chapter." (2) The requirement in the last sentence of section 4920(b)(2) (as added by paragraph (1) of this subsection) that the issuing corporation make its application within 2 years after the date on which additional shares were issued in order to qualify for a waiver shall be deemed satisfied, in any case in which such 2-year period has elapsed before the expiration of 60 days after the date of the enactment of this Act, if the issuing corporation involved makes the application within such 60-day period. (3) The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (h)

21

Effective date.

CERTAIN MUTUAL F U N D S. —

(1) Section 4920 is amended— (A) by inserting "subject to the provisions of subsection (e)," before "a domestic corporation which" in subsection (B) by inserting after "If, at the close of any succeeding quarter," in subsection (a)(3)(B) the following: "15 percent or more in value of the outstanding stock of the company is owned, directly, or indirectly (within the meaning of section 4915(a)(1)), by one person, or"; and (C) by redesignating subsection (e) as (f), and by inserting after subsection (d) the following new subsection: "(e) CERTAIN MUTUAL FUNDS.—Notwithstanding subsection (a) (3)(B), a domestic corporation described in such subsection shall not be treated as a 'foreign issuer', 'foreign obligor', or 'foreign issuer or obligor' with respect to any acquisition of stock or a debt obligation which is attributable to funds obtained by borrowing or through issuance of its stock after March 24, 1971." (2) The amendments made by paragraphs (1)(A) and (C) shall apply with respect to acquisitions made after March 24, 1971. The amendment made by paragraph (1)(B) shall take effect on the date of the enactment of this Act.

26Usc492^J.

78 Stat. 824. Ante, p. 18.

Effective date.

(i) DEBT OBLIGATIONS W I T H MATURITY OF LESS T H A N A YEAR.—

(1) Subchapter A of chapter 41 is amended by adding at the end thereof the following new section:

26 USC 4911.

"SEC. 4921. DEBT OBLIGATIONS WITH MATURITY OF LESS THAN A YEAR. "(a)

STANDBY AUTHORITY. —

"(1) IN GENERAL.—If the President of the United States determines, after taking into account the domestic economic objectives, the balance of payments objectives, and the other international economic objectives of the United States, that it is desirable to apply the tax imposed by section 4911 to the acquisition of debt ga^statr'aela'!^' obligations of foreign obligors having a period remaining to maturity of less than 1 year, he may, from time to time by Executive order (applicable as provided in subsection (c)), extend the application of such tax, at such rate or rates (subject to the provisions of subsection (b)) specified in such order, to the acquisition of such debt obligations specified in such order. The authority conferred by this paragraph may be exercised, at the discretion of the President, with respect to any classification of such debt obligations specified in paragraph (2), and with respect to acquisitions occurring during such period of time, as may be specified in the Executive order. The President may by subsequent Executive order terminate or modify any Executive order previously issued under this section.

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PUBLIC LAW 92-9-APR. 1, 1971

[85 STAT.

"(2) CLASSIFICATIONS.—For purposes of paragraph (1), debt obligations may be classified according to—' " (A) type of debt obligation, " (B) period of maturity, " (C) category of obligee, " (D) category of obligor, " (E) aggregate amounts subject to tax or not subject to tax, or " (F) other criteria similar to any of the foregoing. " (b) RATES OF TAX.—The rates of tax which may be specified in an

9fi n^r iQ^^• note.

Executive order issued under this section shall not exceed the rate applicable to debt obligations having a period remaining to maturity of at least 1 year, but less than 1^4 years. "(c) APPLICABILITY OF EXECUTIVE ORDER.—Any Executive order issued under this section shall apply with respect to acquisitions made after the date on which such Executive order is issued, except that in the case of any such order which subjects acquisitions to the tax which are not then subject to the tax, or which increases a rate of tax (as in effect without regard to such order), to the extent specified in such order, rules similar to the rules prescribed in paragraphs (2), (3), and (4) of section 3(c) of the Interest Equalization Tax Extension Act of 1967 shall apply. (ci) KEGULATIONS.—llie Secretary or his delegate may prescribe such regulations (not inconsistent with the provisions of this section or any Executive order issued and in effect under this section) as may be necessary to carry out the provisions of this section." (2) The table of sections for subchapter A of chapter 41 is amended by adding at the end thereof the following new item: "Sec. 4921. Debt obligations with maturity of less than a year." (j) PENALTY FOR FAILURE To F I L E QUARTERLY RETURN OR R E M I T TAX.—

83 Stat. 727.

81 Stat. 148.

83 Stat. 268.

^ ^ Section 6651 is amended by adding at the end thereof the following new subsection: "(e) CERTAIN INTEREST EQUALIZATION TAX RETURNS.—The provisions of this section shall apply with respect to returns of amounts withheld under section 4918(e)(7) (relating to withholding of interest equalization tax by participating firms) in the same manner and to the same extent as they apply with respect to returns specified in subsection (a)(1)." (£) Section 6680 is amended— (A) by inserting " (a) IN GENERAL.—" immediately before " I n addition"; and (B) by adding at the end thereof the following new subsection: "(b)

CROSS R E F E R E N C E. — 'Tor additions and penalties in case of failure to file interest equalization tax returns or pay or remit, see section 665L"

Effective date.

^3^ 'pj^g amendments made by this subsection shall apply with respect to returns required to be filed on or after the date of the enactment of this Act. (k) ELIMINATION OF KNOWLEDGE REQUIREMENT REGARDING FILING OF FALSE INTEREST EQUALIZATION T A X CERTIFICATES.—

81 Stat. 155, 176.

(1) Section 6681(a) is amended— (A) by striking out "knowingly"; and (B) by striking out "shall be liable" and inserting in lieu thereof "shall, unless it is shown that such action is due to reasonable cause and not due to willful neglect, be liable".

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PUBLIC LAW 92-10-APR. 14, 1971

(2) Section 6681(b)(1) is amended— (A) by striking out " A participating firm" and inserting in lieu thereof "Unless it is shown that such action is due to reasonable cause and not due to willful neglect, a participating firm"; and (B) by striking out "knowingly". (3) Section 6681(b)(2) is amended— (A) by striking out " A participating firm" and inserting in lieu thereof "Unless it is shown that such action is due to reasonable cause and not due to willful neglect, a participating firm"; and (B) by striking out "knowingly" each place it appears. (4) The amendment made by this subsection shall apply with respect to actions occurring after the date of the enactment of this Act. Approved April 1, 1971.

23 81 Stat. 155. 26 USC 6 6 8 1.

Effective date.

Public Law 92-10 AN ACT To amend the tobacco marketing quota provisions of the Agricultural Adjustment Act of 1938, as amended.

April 14, 1971 [s. 789]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Agricultural Burley to b a c c o. Marketing Adjustment Act of 1938, as amended, hereinafter referred to as the quoTas "Act", is amended by adding immediately following section 318 a new 8/513^*120^' section 319 to read as follows: 7 USC 1281, 1314d. 'FARM POUNDAGE QUOTAS FOR BURLEY TOBACCO

"SEC. 319. (a) Notwithstanding any other provision of law, the Secretary shall, within thirty days following the enactment of this section, proclaim national marketing quotas for burley tobacco for the three marketing years beginning October 1, 1971, and determine and announce the amount of the marketing quota for burley tobacco for the marketing year beginning October 1, 1971, as provided in this section. "Within thirty days following such proclamation, the Secretary shall Referendum. conduct a referendum of the farmers engaged in the production of the 1970 crop of burley tobacco to determine whether they favor or oppose the establishment of farm marketing quotas on a poundage basis as provided in this section for the three marketing years beginning October 1, 1971. If the Secretary determines that two-thirds or more of the farmers voting in such referendum approve marketing quotas on a poundage basis, marketing quotas as provided in this section shall be in effect for those three marketing years. I f marketing quotas on a poundage basis are not approved by at least two-thirds of the farmers voting in such referendum, no marketing quotas or price support for burley tobacco shall be in effect for the marketing year beginning October 1, 1971. Thereafter, the provisions of section 312 of the Act ^69 Stat. 557; shall apply: Provided, That national marketing quotas for burley 70 Stat. 330. tobacco for any marketing year subsequent to the marketing year 7 USC 1312. beginning October 1, 1971, shall be proclaimed as provided in this section. "(b) The Secretary shall determine and announce, not later than the February 1 preceding the second and third marketing years of any three-year period for which marketing quotas on a poundage basis

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PUBLIC LAW 92-10-APR. 14, 1971

Referendum. 69 Stat. 557. 7 USC 1312.

National marketing quota, determination.

National reserve, establishment.

Farm yield, determination.

Limitation.

Preliminary farm marketing quota.

[85 STAT.

are in effect under this section, the amount of the national marketing quota for each of such years. If marketing quotas have been made effective on a poundage basis under this section, the Secretary shall, not later than February 1 of the last year of three consecutive marketing years for which marketing quotas are in effect under this section, proclaim national marketing quotas for burley tobacco for the next three succeeding marketing years as provided in this section. Within thirty days following such proclamation, the Secretary shall conduct a referendum in accordance with section 312(c) of the Act. If the Secretary determines that more than one-third of the farmers voting oppose the national marketing quotas, he shall announce the results and no marketing quotas or price support shall be in effect for such kind of tobacco for the first marketing year of such three-year period. Thereafter, the provisions of section 312 of the Act shall apply: Provided, That the national marketing quota and farm marketing quotas shall be determined as provided in this section. Notice of thei farm marketing quota which will be in effect for his farm for the first marketing year covered by any referendum under this section shall, insofar as practicable, be mailed to the farm operator in sufficient time to be received prior to the referendum. " (c) The national marketing quota determined under this section for burley tobacco for any marketing year shall be the amount produced in the United States which the Secretary estimates will be utilized in the United States and will be exported during such marketing year, adjusted upward or downward in such amount as the Secretary, in his discretion, determines is desirable for the purpose of maintaining an adequate supply or for effecting an orderly reduction of supplies to the reserve supply level. Any such downward adjustment shall not exceed 5 per centum of such estimated utilization and exports. For each marketing year for which marketing quotas are in effect under this section, the Secretary in his discretion may establish a reserve (hereinafter referred to as the 'national reserve') from the national marketing quota in an amount not in excess of 1 per centum of the national marketing quota to be available for making corrections and adjusting inequities in farm marketing quotas, and for establishing marketing quotas for new farms (that is, farms for which farm marketing quotas are not otherwise established). " (d) When a national marketing quota is first proclaimed under this section, the Secretary shall through local committees determine a farm yield for each farm for which a burley tobacco acreage allotment was established for the marketing year beginning October 1, 1970. Such yield shall be determined by averaging the yield per acre for the four highest years of the five consecutive years beginning with the 1966 crop year: Provided, That if burley tobacco was produced on the farm in fewer than five of such years, the farm yield shall be the simple average of the yields obtained in the years during such period that burley tobacco was produced on the farm: Provided further, That if no burley tobacco was produced on the farm but the farm was considered as having planted burley tobacco during the immediately preceding five years, the farm yield will be appraised on the basis of the yields established for similar farms in the area on which burley tobacco was produced during such five-year period: And provided further, That the farm yield established for any farm shall not exceed three thousand five hundred pounds per acre. "(e) A preliminary farm marketing quota Shall be determined for each farm for which a burley tobacco acreage allotment was established for the marketing year beginning October 1, 1970, by multiplying the farm yield determined under subsection (d) of this section by the farm

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PUBLIC LAW 92-10-APR. 14, 1971

acreage allotment (prior to any reduction for violation of regulations issued pursuant to the Act) established for such farm for the marketing year beginning October 1, 1970. For each farm for which such a preliminary farm marketing quota is determined, a farm marketing quota for the first j^ear shall be determined by multiplying the preliminary farm marketing quota by a national factor obtained by dividing the national marketing quota determined under subsection (c) of this section (less the national reserve) by the sum of all preliminary farm marketing quotas as determined under this subsection: Provided, That such national factor shall not be less than 95 per centum. "The farm marketing quota for each succeeding year shall be determined by multiplying the previous year's farm marketing quota by a national factor obtained by dividing the national marketing quota determined under subsection (c) of this section (less the national reserve) by the sum of the farm marketing quotas for the immediately preceding year for all farms for which burley tobacco marketing quotas will be determined for such succeeding marketing year: Provided, That such national factor shall not be less than 95 per centum: Provided fwrther^ That for the marketing years beginning October 1, 1972, and October 1, 1973, the farm marketing quota for any farm shall not be less than the smaller of (1) one-half acre times the farm yield times one-half the sum of the figure one and the national factor for the current year, or (2) the farm marketing quota for the immediately preceding marketing year times one-half the sum of the figure one and the national factor for the current year. The farm marketing quota so computed for any farm for any year shall be increased by the number of pounds by which marketings from the farm during the immediately preceding year were less than the farm marketing quota (after adjustments): Provided, That any such increase shall not exceed the amount of the farm marketing quota (including leased pounds) for the immediately preceding marketing year prior to any increase for undermarketings or decrease for overmarketings. The farm marketing quota so computed for each farm for any year shall be reduced by the number of pounds by which marketing from the farm during the immediately preceding year exceeded the farm marketing quota (after adjustments): Provided, That if, on account of excess marketings in the preceding year, the farm marketing quota is reduced to zero pounds without reflecting the entire reduction required, the additional reduction required shall be made in subsequent marketing years. "The fann marketing quota for a new farm shall be the number of pounds determined by the county committee with approval of the State committee to be fair and reasonable for the farm on the basis of the past burley tobacco experience of the farm operator; the land, labor, and equipment available for the production of burley tobacco; crop rotation practices, and the soil and other physical factors airectin^ the production of burley tobacco: Provided., That the farm marketnig quota for any such new farm shall not exceed 50 per centum of the average of the farm marketing quotas for similar farms for which farm marketing quotas are otherwise established: Provided further. That the number of pounds allocated to all new farms shall not exceed that portion of the national reserve provided by the Secretary for establishing quotas fornewfanns. " (f) When a poundage program is in effect under this section, the farm marketing quota next established for any farm shall be reduced by the amount of burley tobacco produced on any farm (1) which is marketed as having been produced on a different farm; (2) for which proof of disposition is not furnished as required by the Secretary; and

25

Limitation. Quota computation, succeeding years.

Limitations.

New farm.

Limitations,

Reductions.

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Leases and transfers.

7 u??i3i4d"

Limitations.

Penalties. 5/stat^*393^' 69 Stat! 24.' 7 USC 1314

Ante, p. 23.

PUBLIC LAW 92-10-APR. 14, 1971

[85 S TAT.

(3) as to which any producer on the farm files, or aids or acquiesces in the filing of, any false report with respect to the production or marketings of tobacco: Provided, That if the Secretary through the local committee finds that no person connected with such farm caused, aided, or acquiesced in any such iregularity, the next established farm marketing quota shall not be reduced under this subsection. The reductions required under this subsection shall be in addition to any other adjustments made pursuant to this section. " (g) When a poundage program is in effect under this section, farm marketing quotas (after adjustments) for burley tobacco may be leased and transferred to other farms in the same county under the That such leases and transfers shall be on a pound for pound basis: Provided further. That any adjustment for undermarketings or overmarketings shall be attributed to the farm to which leased and transferrcd: Provided further, That not more than fifteen thousand pounds may be leased and transferred to any farm under this section: And provided further, That the marketing quota determined for any farm subsequent to such lease and transfer shall not exceed an amount determined by multiplying the farm yield established under subsection (d) of this section by 50 per centum of the acreage of cropland in the farm. " (h) Effective with the marketing year beginning October 1, 1976, no marketing quota, other than a new farm marketing quota, shall be established for a farm on which no burley tobacco was planted or considered planted in any of the five years immediately preceding the year for which farm marketing quotas are being established. " ^ j ^ Wlicu marketing quotas under this section are in effect, provisions with respect to penalties for the marketing of excess tobacco and ^^^ otlicr provisions contained in section 314 of the Act shall apply, cxccpt that: a^2) No penalty on excess tobacco shall be due or collected until 110 per centum of the farm marketing quota (after adjustments) for a farm has been marketed, but with respect to each pound of tobacco marketed in excess of such percentage the full penalty rate shall be due, payable, and collected at the time of marketing on each pound of tobacco marketed, and any tobacco marketed in excess of 100 per centum of the farm marketing quota (after adjustments) will require a reduction in subsequent farm marketing quotas in accordance with section 319(c): Provided, That if the Secretary, in his discretion, determines it is desirable to encourage additional marketings of any grades of burley tobacco during any marketing year to insure traditional market patterns to meet the normal demands of export and domestic markets, he may authorize the marketing of such grades without the payment of penalty or deduction from subsequent quotas to the extent of 5 per centum of the farm marketing quota for the farm on which the tobacco was produced, and such marketings shall be eligible for price support. "(2) The provisions with respect to penalties contained in the third sentence of section 314(a) shall be revised to read: 'If any producer falsely identifies or fails to account for the disposition of any tobacco, the Secretary, in lieu of assessing and collecting penalties based on actual marketings of excess tobacco, may elect to assess a penalty computed by multiplying the full penalty rate by an amount of tobacco equal to 25 per centum of the farm marketing quota (after adjustments) and the penalty in respect thereof shall be paid and remitted by the producer.'. "(3) The provisions contained in the fourth sentence of section 314(a) shall not be applicable. For the first year a marketing quota
 * ^™^s and conditions contained in section 318 of the Act: Provided,

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27

program established under the provisions of this section is in effect, the farm marketing quota determined under the provisions of section Ante, p. 2 3. 319(e) shall receive a temporary upward adjustment equal to the amount of carryover penalty-free burley tobacco for the farm. For subsequent years, the provisions of section 319(c) shall apply. " (j) The Secretary shall prescribe such regulations as he considers Regulations. necessary for carrying out the provisions of this section." SEC. 2. Section 378 of the Agricultural Adjustment Act of 1938, as amended, is amended by adding subsection (f) to read as follows: 72 stat, 995; " (f) I n applying the provisions of this section to a farm for which 1378.^ * ' a tobacco marketing quota has been determined under section 319 of ^ use 1378. this Act, the words 'allotment' and 'acreage', wherever they appear, shall be construed to mean 'marketing quota' and 'poundage', respectively, as required." SEC. 3. Clause (c) of section 106 of the Agricultural Act of 1949, P " " support. as amended, is amended to read as follows: 7^us*c*i445. "(c) If acreage poundage or poundage farm marketing quotas are in effect under section 317 or 319 of the Agricultural Adjustment Act of 1938, as amended, (1) price support shall not be made available g/stat^ 3'u^' on tobacco marketed in excess of 110 per centum of the marketing quota 7 u^sc 13 i4c. (after adjustments) for the farm on which such tobacco was produced, and (2) for the purpose of price-support eligibility, tobacco carried over from one marketing year to another shall, when marketed, be considered tobacco of the then current crop." SEC. 4. Any action taken by the Secretary pursuant to section 312 of the Act (7 U.S.C. 1312) for burley tobacco for any of the three,„^f,^,*Vo"^' marketing years beginning October 1, 1971, prior to the enactment 70 Stat. 330. of this section, shall be of no effect. Approved April 14, 1971.

Public Law 92-11 JOINT RESOLUTION April 30,197i Making certain urgent supplemental appropriations for the fiscal year 1971, [H. J. Res. 567] and for other purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the fol- s^-^^llll^^l^l^ lowing sums are appropriated, out of any money in the Treasury not 1971. otherwise appropriated, for the fiscal year ending June 30, 1971, namely: CHAPTER I DEPARTMENT OF DEFENSE—MILITARY OPERATION AND MAIXTEXANCE CLAIMS, DEFENSE

For an additional amount for "Claims, Defense", not to exceed $13,000,000 may be derived by transfer in amounts not to exceed (a) $3,000,000 from "Defense production guarantees, Army", (b) $4,000,000 from "Defense production guarantees, Navy", and (c) $6,000,000 from "Defense production guarantees, Air Force".

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PUBLIC LAW 92-11-APR. 30, 1971

[85 STAT.

CHAPTER II VETERANS ADMINISTRATION COMPENSATION AND PENSIONS

For an additional amount for "Compensation and pensions," $433,779,000, to remain available until expended. READJUSTMENT BENEFITS

For an additional amount for "Readjustment benefits," $302,200,000, to remain available until expended. CHAPTER III DEPARTMENT OF LABOR WAGE AND LABOR STANDARDS ADMINISTRATION SALARIES AND EXPENSES

84 Stat.^1590.

29 USC 651 note

44 Stat. 1444; 70 Stat. 656. 33 USC 944.

For an additional amount for "Wage and Labor Standards Administration, Salaries and expenses," including carrying out the functions of the Secretary under the Occupational Safety and Health Act of 1970 (Public Law 91-596, approved December 29, 1970), $7,818,000, of which $4,000,000 shall be for grants to States authorized by said Public Law 91-596 and not to exceed $118,000 shall be transferred to the fund created by section 44 of the Longshoremen's and Harbor Workers' Compensation Act, as amended.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE ENVIRONMENTAL HEALTH SERVICE ENVIRONMENTAL CONTROL

For an additional amount for "Environmental control," for carrying out the provisions of the Occupational Safety and Health Act of 1970, Public Law 91-596, $4,000,000. RELATED AGENCIES OCCUPATIONAL SAFETY AND H E A L T H REVIEW COMMISSION SALARIES A N D EXPENSES

84 Stat. 1603. 29 USC 661.

For expenses necessary for the Occupational Safety and Health Review Commission, established by section 12 of the Act of December 29, 1970 (PublicLaw91-596),$75,000. CHAPTER IV SMALL B U S I N E S S ADMINISTRATION D I S A S T E R LOAN FUND

For additional capital for the "Disaster loan fund," $265,000,000, to remain available without fiscal year limitation.

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PUBLIC LAW 92-12-MAY 7, 1971

CHAPTER V FUNDS APPEOPRIATED TO THE PRESIDENT DISASTER R E L I E F

For an additional amount for "Disaster relief," including carrying out the functions of the Office of Emergency Preparedness under the Disaster Relief Act of 1970 (Public Law 91-606), $25,000,000, to remain available until expended: Provided, That not to exceed 3 per centum of the foregoing amount shall be available for administrative expenses. CHAPTER VI

84 Stat. 1744. 42 USC 4401 note.

GENERAL PROVISIONS No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein. Approved April 30, 1971.

Public Law 92-12 AN ACT To amend the Rural Electrification Act of 1936, as amended, to provide an additional source of financing for the rural telephone program, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it is hereby declared to be the policv of the Congress that the growing capital needs of the rural telepnone systems require the establishment of a rural telephone bank which will furnish assured and viable sources of supplementary financing with the objective that said bank will become an entirely privately owned, operated, and financed corporation. The Congress further finds that many rural telephone systems require financing under the terms and conditions provided in title II of the Rural Electrification Act of 1936, as amended. I n order to effectuate this policy, the Rural Electrification Act of 1936, as amended (7 U.S.C. 921-924), is amended as hereinafter provided. SEC. 2. The Rural Electrification Act of 1936, as amended, is amended by adding the following two new titles: "TITLE III "SEC. 301. RURAL TELEPHONE ACCOUNT.—There is hereby estab-

lished in the Treasury of the United States an account, to be known as the rural telephone account, consisting of so much of the net collec-

May 7, 1971 [S. 70]

Rural telephone program. Financing.

63 Stat. 948; 76 Stat. 1140. 7 USC 922. 49 Stat.-1363. 7 USC 901.

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[85 STAT.

tion proceeds (as defined in section 406(a) of this Act) as may be necessary to provide for investment in the capital stock of the Eural Telephone Bank in accordance with such section 406(a): Provided, That such investment shall be deemed paid in capital of the said bank notwithstanding that funds representing the proceeds from the sale of such stock shall remain in the rural telephone account until required for actual disbursement in cash by the said oank, "SEC. 302. DEPOSIT OF ACCOUNT MONEYS.—Moneys in the rural telehone account shall remain on deposit in the Treasury of the United tates until disbursed.

g

"TITLE IV Rural Telephone Bank

"SEC.

4 0 1. ESTABLISHMENT,

GENERAL

PURPOSES,

AND

STATUS

OF

THE TELEPHONE B A N K. — (a) There is hereby established a body corporate to be known as the Rural Telephone Bank (hereinafter called the telephone bank). "(b) The general purposes of the telephone bank shall be to obtain an adequate supply of supplemental funds to the extent feasible from non-Federal sources, to utilize said funds in the making of loans under secti(m 408 of this title, and to conduct its operations to the extent practicable on a self-sustaining basis. "(c) The telephone bank shall be deemed to be an instrumentality of the United States, and shall, for the purposes of jurisdiction and venue, be deemed a citizen and resident of the District of Columbia. The telephone bank is authorized to make payments to State, territorial, and local governments in lieu of property taxes upon real property and tangible personal property which was subject to State, territorial, and local taxation before acquisition by the telephone bank. Such payment may be in the amounts, at the times, and upon such terms as the telephone bank deems appropriate but the telephone bank shall be guided by the policy of making payments not in excess of the taxes which would have been payable upon such property in the condition in which it was acquired. " SEC. 402. GENERAL POWERS.—To carry out the sijecific powers herein authorized, the telephone bank shall have power to (a) adopt, alter, and use a corporate seal; (b) sue and be sued in its corporate name; (c) make contracts, leases, and cooperative agreements, or enter into other transactions as may be necessary in the conduct of its business, and on such terms as it may deem appropriate; (d) acquire, in any lawful manner, hold, maintain, use, and dispose of property: Provided, That the telephone bank may only acquire property needed in the conduct of its banking operations or pledged or mortgaged to secure loans made hereunder or m temporary operation or maintenance thereof: Provided further, That any such pledged or mortgaged property so acquired shall be disposed of as promptly as is consistent with prudent liquidation practices, but in no event later than five years after such

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acquisition; (e) accept gifts or donations of services or of property in aid of any of the purposes herein authorized; (f) appoint such officers, attorneys, agents, and employees, vest them with such powers and duties, hx and pay such compensation to them for their services as the telephone bank may determine; (g) determine the character of and the necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed, and paid; (h) execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers; (i) collect or compromise all obligations assigned to or held by it and all legal or equitable rights accruing to it in connection with the payment of such obligations until such time as such obligations may be referred to the Attorney General for suit or collection; and (j) exercise all such other powers as shall be necessary or incidental to carrying out its functions under this title. " SEC. 403. SPECIAL PROVISIONS GOVERNING TELEPHONE B A N K AS AN AGENCY OF THE UNITED STATES U N T I L CONVERSION or OWNERSHIP, CONTROL, AND OPERATION.—Until the ownership, control, and opera-

tion of the telephone bank is converted as provided in section 410(a) of this title and not thereafter— " (a) the telephone bank shall be an agency of the United States and shall be subject to the supervision and direction of the Secretary of Agriculture (hereinafter called the Secretary): Provided, however, That the telephone bank shall at no time be entitled to transmission of its mail free of postage, nor shall it have the priority of the United States in the payment of debts out of bankrupt, insolvent, and decedents' estates; " (b) in order to perform its responsibilities under this title, the telephone bank may partially or jointly utilize the facilities and the services of employees of the Kural Electrification Administration or of any other agency of the Department of Agriculture, without cost to the telephone bank; " (c) the telephone bank shall be subject to the provisions of the Government Corporation Control Act, as amended (31 U.S.C. 841, et seq.), in the same manner and to the same extent as if it were ^9 Stat. 597. included in the definition of 'wholly owned Government corporation' as set forth in section 101 of said Act (31 U.S.C. 846); " (d) the telephone bank may without regard to the civil service classification laws appoint and fix the compensation of such officers and employees of the telephone bank as it may deem necessary; "(e) the telephone bank shall be subject to the provisions of sections 517, 519, and 2679 of title 28, United States Code. 8° Stat. 613, "SEC. 404. GovERNOR.~Subject to the provisions of section 410, ^2 Stat. 984; the Admmistrator of the Rural Electrification Administration shall ^^ Stat. 539. serve as the chief executive officer of the telephone bank (herein called

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Telephone Bank Board.

Term.

Compensation.

PUBLIC LAW 92-12-MAY 7, 1971

[85

STAT.

the Governor of the telephone bank). Except as to matters specifically reserved to the Telephone Bank Board in this title, the Governor of the telephone bank shall exercise and perform all functions, powers, and duties of the telephone bank. " SEC. 405. BOARD OF DIRECTORS.— (a) The management of the tele-

phone bank, within the limitations prescribed by law, shall be vested in a board of directors (herein called the Telephone Bank Board) consisting of thirteen members. " (b) The Administrator of the Rural Electrification Administration and the Governor of the F a r m Credit Administration shall be members of the Telephone Bank Board. Five other members of the Telephone Bank Board shall be designated by the President to serve at his pleasure, three of whom shall be officers or employees of the Department of Agriculture but not officers or employees of the Rural Electrification Administration, and two of whom shall be from the general public and not officers or employees of the Federal Government. The Administrator and other officers and employees of the Department of Agriculture and the Governor of the F a r m Credit Administration shall serve as members without additional compensation. "(c) As soon as practicable after enactment of this title, the President of the United States shall appoint six additional members of the initial Telephone Bank Board to be selected from the directors, manag"ers, and employees of any entities eligible to borrow from the telephone bank and of organizations controlled by such entities, with due regard to fair representation of the rural telephone systems of the Nation. The six members thus appointed shall serve until their successors shall have been duly elected in accordance with subsection " (d) Within twelve months following the appointment of the six members of the initial Board as provided in subsection (c), the Governor of the telephone bank shall call a meeting of all entities then eligible to borrow from the telephone bank and organizations controlled by such entities for the purpose of electing members of the Telephone Bank Board. Each such entity and organization shall be entitled to notice of and shall have one noncumulative vote at said meeting. Six members of the Telephone Bank Board shall be elected for a two-year term, three from among the directors, managers, and employees of cooperative-type entities eligible to vote and organizations controlled by such entities, and three from among the managers, directors, and employees of commercial-type entities eligible to vote and organizations controlled by such entities. These six members shall be elected by majority vote of the entities and organizations eligible to vote and such entities and organizations may vote by proxy. "(e) Thereafter, in accordance with the bylaws of the telephone bank, the six members of the Telephone Bank Board shall be elected by holders of class B and class C stock, three from among the directors, managers, and employees of cooperative-type entities and organizations controlled by such entities holding class B or class C stock, and three from among the directors, managers, and employees of commercialtype entities and organizations controlled by such entities holding class B or class C stock. These six members shall be elected by majority vote of the entities and organizations eligible to vote and such entities and organizations may vote by proxy. "(f) Any Telephone Bank Board member may continue to serve after the expiration of the term for which he is elected until his successor has been elected and has qualified. Telephone Bank Board members designated from the general public, pursuant to subsection (b), or appointed or elected pursuant to subsections (c), (d), and

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(e), shall receive $100 for each day or part thereof, not to exceed one hundred days per year for the first three years after enactment of this title and not to exceed fifty days per year thereafter, spent in the performance of official duties, and shall be reimbursed for travel and other expenses in such manner and subject to such limitations as the Telephone Bank Board may prescribe. " (g) The Telephone Bank Board shall prescribe bylaws, not inconsistent with law, regulating the manner in which the telephone bank's business shall be conducted, its directors and officers elected, its stock issued, held, and disposed of, its property transferred, its bylaws amended, and the powers and privileges granted to it by law exercised and enjoyed. " (h) The Telephone Bank Board shall meet at such times and places as it may fix and determine, but shall hold at least four regularly scheduled meetings la year, and special meetings may be held on call in the manner specified in the bylaws of the telephone bank. ! "(i) The Telephone Bank Board shall make an annual report to the Secretary for transmittal to the Congress on the administration of this title IV and any other matters relating to the effectuation of the policies of title IV, including recommendations for legislation. "SEC. 406. CAPITALIZATION.—(a) The telephone bank's capital shall consist of capital subscribed by the United States, by borrowers from the telephone bank, by corporations and public bodies eligible to become borrowers from the telephone bank, and by organizations controlled by such borrowers, corporations, and public bodies. Beginning with the fiscal year 1971 and for each fiscal year thereafter, the United States shall furnish capital for the purchase of class A stock and there are hereby authorized to be appropriated from net collection proceeds in the rural telephone account created under title III of this Act such amounts, not to exceed $30,000,000 annually, for such purchases until such class A stock shall equal $300,000,000: Provided, That on or before July 1, 1975, the Secretary shall make a report to the President for transmittal to the C^on^ress on the status of capitalization of the telephone bank by the United States with appropriate recommendations. As used in this section and section 301, the term 'net collection proceeds' shall be deemed to mean payments from and after July 1, 1969, of principal and interest on loans heretofore or hereafter made under section 201 of this Act, less an amount representing interest payable to the Secretary of the Treasury on loans to the Administrator for telephone purposes pursuant to section 3(a) of this Act. " (b) The capital stock of the telephone bank shall consist of three classes, class A, class B, and class C, the rights, powers, privileges, and preferences of the separate classes to be as specified, not inconsistent with law, in the bylaws of the telephone bank. Class B and class C stock shall be voting stock, but no holder of said stock shall be entitled to more than one vote, nor shall class B and class C stockholders, regardless of their number, which are owned or controlled by the same person, group of persons, firm, association, or corporation, be entitled in any event to more than one vote. " (c) Class A stock shall be issued only to the Administrator of the Rural Electrification Administration on behalf of the United States in exchange for capital furnished to the telephone bank pursuant to subsection (a), and such class A stock shall be redeemed and retired by the telephone bank as soon as practicable after June 30, 1985, but not to the extent that the Telephone Bank Board determines that such retirement will impair the operations of the telephone bank: Provided, That the minimum amount of class A stock that shall be retired each year after said date and after the amount of class A and class B stock issued totals $400,000,000, shall equal the amount of class B stock sold by the telephone bank during such year. Class A stock shall

33

Bylaws.

Meetings.

Annual report, transmittal to Congress.

Ante, p. 29. Report to President, transmittal to Congress. "Net collection proceeds." 63 Stat. 948. 7 USC 922. 61 Stat. 546. 7 USC 903. Stock classification.

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s^ock,^speciai^

Patronage re-

PUBLIC LAW 92-12-MAY 7, 1971

[85 STAT.

be entitled to a return, payable from income, at the rate of 2 per centmn per annum on the amounts of said class A stock actually paid into the telephone bank. Such return shall be cumulative and shall be payable annually into miscellaneous receipts of the Treasury. " (d) Class B stock shall be held only by recipients of loans under section 408 of this Act. Borrowers receiving loan funds pursuant to section 408(a)(1) or (2) shall be required to invest in class B stock 5 per centum of the amount of loan funds so provided. Xo dividends shall be payable on class B stock. All holders of class B stock shall be entitled to patronage refunds in class B stock under terms and conditions to be specified in the bylaws of the telephone bank. "(e) Class C stock shall be available for purchase and shall be held only by borrowers, or by corporations and public bodies eligible to borrow under section 408 of this Act, or by organizations controlled by such borrowers, corporations and public bodies, and shall be entitled to dividends in the manner specified in the bylaws of the telephone bank. Such dividends shall be payable only from income and, until all class A stock is retired, shall not exceed the current average rate payable on its telephone debentures, a^f^ j f.^ firm, association, corporation, or public body is not authorized under the laws of the jurisdiction in which it is organized to acquire stock of the telephone bank, the telephone bank shall, in lieu thereof, permit such organization to pay into a special fund of the teleplione bank a sum equivalent to the amount of stock to be purchased. Each reference in this title to capital stock, or to class B, or class C stock, shall include also the special fund equivalents of such stock, and to the extent permitted under the laws of the jurisdiction in \\'*hich such organization is organized, a holder of special fund equivalents of class B, or class C stock, shall have the same rights and status as a holder of class B or class C stock, respectively. The rights and obligations of the telephone bank in respect of such special fund equivalent shall be identical to its rights and obligations in respect of chiss B or class C stock, respectively. " (g) After payment of all operating expenses of the telephone bank, including interest on its telephone debentures, setting aside appropriate funds for reserves for losses, and making payments in lieu of taxes, and returns on class A stock as provided in section 406 (c), and on class C stock, the Telephone Bank Board shall annually set aside the remaining earnings of the telephone bank for patronage refunds in accordance with the bylaws of the telephone bank. " SEC. 407. BORROWING POWER.—The telephone bank is authorized to obtain fluids through the public or private sale of its bonds, debentures, notes, and other evidences of indebtedness (herein collectively called telephone debentures). Telephone debentures shall be issued at such times, bear interest at such rates, and contain such other terms and conditions as the Telephone Bank Board shall determine: Frorided, however, That the amount of the telephone debentures which may be outstanding at any one time pursuant to this section shall not exceed eight times the paid-in capital and retained earnings of the telephone bank. The telephone bank shall insert in all its telephone debentures appropriate language indicating that such telephone debentures, together with interest thereon, are not guaranteed by the United States and do net constitute a debt or obligation of the United States or of any agency or instrumentality thereof other than the telephone bank. Telephone debentures shall not be exempt, either as to principal or interest, from any taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State or local taxing authority. Telephone debentures shall be lawful investments and

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may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. " SEC. 408. LENDING POWER.—(a) The Governor of the telephone

bank is authorized on behalf of the telephone bank to make loans, in conformance with policies approved by the Telephone Bank Board, to corporations and public bodies which have received a loan or loan commitment pursuant to section 201 of this Act, (1) for the same purposes and under the same limitations for which loans may be made under section 201 of this Act, (2) for the purposes of financing, or refinancing, the construction, improvement, expansion, acquisition, and operation of telephone lines, facilities, or systems, in order to improve the efficiency, effectiveness, or financial stability of borrowers financed under sections 201 and 408 of this Act, and (3) for the purchase of class B stock required to be purchased under section 406(d) of this Act but not for the purchase of class C stock, subject, as to the purposes set forth in (2) hereof, to the following provisos: That in the case of any such loan for the acquisition of telephone lines, facilities, or systems, the acquisition shall be approved by the Secretary, the location and character thereof shall be such as to improve the efficiency, effectiveness, or financial stability of the telephone system of the borrower, and in respect of exchange facilities for local services, the size of each acquisition shall not be greater than the borrower's existing system at the time it receives its first loan from the telephone bank, taking into account the number of subscribers served, miles of line, and plant investment. " (b) Loans under this section shall be on such terms and conditions as the Governor of the telephone bank shall determine, subject, however, to the following restrictions: "(1) All loans made under this section shall be fully amortized over a jjeriod not to exceed fifty years. " (2) Funds to be loaned under this Act to any borrower shall be loaned under this section in preference to section 201 if the borrower is eligible for such a loan and funds are available therefor. Notwithstanding the foregoing or any other provision of law, all loans made pursuant to this Act for facilities for telephone systems with an average subscriber density of three or fewer per mile shall be made under section 201 of this Act; but this provision shall not preclude the making of such loans from the telephone bank at the election of the borrower. "(3) Loans under this section shall, to the extent practicable, bear interest at the highest rate which meets the requirements set forth in paragraph (4), consistent with the borrower's ability to pay such interest rate and with achievement of the objectives of this Act; but not less than 4 per centum per annum. "(4) Loans shall not be made under this section unless the Governor of the telephone bank finds and certifies that in his judgment (i) the security therefor is reasonably adequate and such loan will be repaid within the time agreed, and (ii) the borrower has the capability of producing net income or margins before interest at least equal to 150 per centum of the interest requirements on all of its outstanding and proposed loans, or such higher per centum as may be fixed from time to time by the Telephone Bank Board in order to allocate available funds equitably among borrowers or to improve the marketability of the telephone debentures: Provided, however, That the Governor of the telephone bank may waive the I'equirement of (ii) above in any case if he shall determine (and set forth his reasons therefor in writing) that this requirement would prevent emergency restoration of the borrower's system or otherwise result in severe hardship to the borrower. 75-432 O - 72 - 5

63 Stat. 948. ^ ^^^ ^^^" ' li, a ,: ^^ ^

Restrictions,

interest rate,

waiver.

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