SEC. 4301 (added 1958)-Continued 1st sen'ce (amended 1960)—Continued In full... revised by P.L. 85-859, § 141(a)) by inserting before the period at the end the following: "; except that such rate shall be 4 cents instead of 10 cents in the case of shares or certificates issued by a corporation to which subchapter M of chapter 1 applies for the taxable year during which such share or certificate is ussued". Applicability: Shares and certificates issued after April 8, 1960-the date of enact ment. (Id., § 2, 74 Stat. 36.) June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: Effective Date: January 1, 1966. (Id., § 701 (c) (1), 79 Stat. 157.) CH. 34, SUBCH. A, PART II-ISSUANCE OF CERTIFICATES OF INDEBTEDNESS (Revised 1958-72 Stat. 1294): In full.... (repealed) June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: Effective Date: January 1, 1966. (Id., § 701(c)(1), 79 Stat. 157.) 536 Part II of Subchapter A of Chapter 34 (as revised by P.L. 85-859, § 141(a)), which had not been amended prior to its repeal by P.L. 89-44, § 401 (a), read as follows (72 Stat. 1294): "PART II-ISSUANCE OF CERTIFICATES OF INDEBTEDNESS "Sec. 4311. Imposition of tax. "Sec. 4312. Renewals. "Sec. 4313. Bond as security for debt. "Sec. 4314. Exemptions. "Sec. 4315. Cross references." "SEC. 4311. IMPOSITION OF TAX. "There is hereby imposed, on all certificates of indebtedness issued by a corporation, a tax at the rate of 11 cents on each $100 of face value or fraction thereof. "SEC. 4312. RENEWALS. "Every renewal of any certificate of indebtedness shall be taxed as a new issue. "SEC. 4313. BOND AS SECURITY FOR DEBT. "In the case where a bond conditioned for the repayment or payment of money is given in a penal sum greater than the debt secured, the tax imposed by section 4311 shall be based upon the amount secured. "SEC. 4314. EXEMPTIONS. "(a) INSTALLMENT PURCHASE OF OBLIGATIONS.-The tax imposed by section 4311 shall not apply to any instrument under the terms of which the obligee is required to make payment therefor in installments and is not permitted to make in any year a payment of more than 20 percent of the cash amount to which entitled upon maturity of the instrument. "(b) OTHER EXEMPTIONS.— "For other exemptions, see section 4382. "SEC. 4315. CROSS REFERENCES. "For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4381 and 4384 and subtitle F." CH. 34, SUBCHAPTER B-SALES OR TRANSFERS OF CAPITAL STOCK AND CERTIFICATES OF INDEBTEDNESS OF A CORPORATION (Revised 1958-72 Stat. 1295-1299): In full.................. June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: (repealed) Repealed Subchapter B of Chapter 34 (as revised by P.L. 85-859, § 141(a), and subsequently amended).537 Effective Date: July 1, 1966. (Id., § 701(c)(1), 79 Stat. 157.) CH. 34, SUBCH. B, PART I-SALES OR TRANSFERS OF CAPITAL STOCK AND SIMILAR INTERESTS (Revised 1958-72 Stat. 1295-1296): In full.................. June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: (repealed) Repealed Part I of Subchapter A of Chapter 34 (as revised by P.L. 85-859, § 141(a) and subsequently amended)." Effective Date: January 1, 1966. (Id., § 701 (c) (1), 79 Stat. 157.) 538 537 The table of parts for Subchapter B of Chapter 34, which had not been amended prior to its repeal by P.L. 89-44, § 401(a), read as follows (72 Stat. 1295): "Part I. Sales or transfers of capital stock and similar interests. "Part II. Sales or transfers of certificates of indebtedness. "Part III. Provisions common to sales or transfers of capital stock and certificates of indebtedness." The provisions of Parts I, II, and III, respectively, included in the repeal of the above Subchapter B of Chapter 34, are set forth separately below. 538 Part I of Subchapter B of Chapter 34 (as revised by P.L. 85-859, § 141(a)) read as follows (72 Stat. 1295-1296): "PART I-SALES OR TRANSFERS OF CAPITAL STOCK AND SIMILAR INTERESTS "Sec. 4321. Imposition of tax. "Sec. 4322. Exemptions. "Sec. 4323. Affixing of stamps. "SEC. 4321. IMPOSITION OF TAX. "There is hereby imposed, on each sale or transfer of shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, issued by a corporation, a tax at the rate of 4 cents on each $100 (or major fraction thereof) of the actual value of the certificates (or of the shares where no certificates are sold or transferred). In no case shall the tax so imposed on any such sale or transfer be "(1) more than 8 cents on each share, or "(2) less than 4 cents on the sale or transfer. "SEC. 4322. EXEMPTIONS. "(a) EXEMPTIONS FOR CERTAIN TRANSFERS.-The tax imposed by section 4321 shall not apply to any delivery or transfer of shares, certificates, or rights (1) BROKERS.-To a broker or his registered nominee for sale of such shares, certificates, or rights; by a broker or his registered nominee to a customer for whom and upon whose order the broker has purchased same; or by a purchasing broker to his registered nominee to be held by such nominee for the same purpose as if held by the broker; or "(2) NOMINEES OF CORPORATIONS.-From a corporation to a registered nominee of such corporation, or from one such nominee to another such noninee, provided that in each instance such shares, certificates, or rights are to be held by the nominee for the same purpose as if retained by the corporation; or from such nominee to such corporation. (b) CERTAIN ODD-LOT TRANSACTIONS. "(1) EXEMPTION.-The tax imposed by section 4321 shall not apply to any odd-lot sale by an odd-lot dealer if the shares, certificates, or rights are delivered or transferred to a broker pursuant to an order of a customer of such broker for such shares, certificates, or rights. "(2) DEFINITIONS. For purposes of paragraph (1)— "(A) The term 'odd-lot sale' means an odd-lot transaction under the rules of the securities exchange of which the odd-lot dealer is a member. "(B) The term 'odd-lot dealer' means a person who is (i) a member of a securities exchange which is registered with the Securities and Exchange Commission as a national securities [Footnote 538 continued on following page] SEC. 4321. IMPOSITION OF TAX (Added 1958-72 Stat. 1295): In full...... Sept. 21, 1959, H.R. 8725, P.L. 86-344, § 5(a), 73 Stat. 619: Amended Sec. 4321 (relating to tax on sales or transfers of stock or stock rights-as contained in the revision of Chapter 34 by P.L. 85-859, 141(a), n. 538), to read as follows: In fulll... (repealed) (b). "SEC. 4321. IMPOSITION OF TAX. "There is hereby imposed on each sale or transfer of shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, issued by a corporation, a tax at the rate of 4 cents on each $100 (or major fraction thereof) of the actual value of the certificates, of the shares where no certificates are sold or transferred, or of the rights, as the case may be. In no case shall the tax so imposed on any such sale or transfer be "(1) more than 8 cents on each share, or "(2) less than 4 cents on the sale or transfer.” Effective Date: November 1, 1959-the first day of the first calendar month beginning more than 10 days after the date of enactment (September 21, 1959). (Id., § 5(c), 73 Stat. 620.) June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: January 1, 1966. (Id., § 701 (c) (1), 79 Stat. 157.) SEC. 4323. AFFIXING OF STAMPS (Added 1958-72 Stat. 1296): (in full) "(b) CERTIFICATION AS TO VALUE BY TRANSFEROR OR TRANSFEREE. Where shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, are presented for transfer and the tax thereon is paid by the use of adhesive stamps, such shares, certificates, or rights shall be accompanied Footnote 538-Continued. exchange, and (ii) registered under the rules of such exchange as an odd-lot dealer or as a specialist. "(c) OTHER EXEMPTIONS. "For other exemptions, see sections 4341, 4342, 4343, 4344, and 4382. "SEC. 4323. AFFIXING OF STAMPS. "(a) BOOKS OF THE CORPORATION.-The stamps representing the tax imposed by section 4321 shall be affixed to the books of the corporation in case of a sale where the evidence of transfer is shown only by the books of the corporation. "(b) CERTIFICATION AS TO VALUE BY TRANSFEROR OR TRANSFEREE.-Where shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, are presented for transfer and the tax thereon is paid by the use of adhesive stamps, such shares or certificates shall be accompanied by a certification signed by the transferor or his agent or the transferee or his agent as to the actual value of the shares or certificates so transferred and any corporation or transfer agent to whom such shares of certificates are presented shall be entitled to rely on such certification without further inquiry. "(c) OTHER EVIDENCES OF SALE OR TRANSFER. "For provisions applicable to the affixing of stamps in cases of sale or transfer shown otherwise than only by the books of the corporation, see section 4352." "SEC. 4324. CROSS REFERENCES. "For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4345, 4351, 4353, 4381, and 4384, and subtitle F." Amendments made to sections 4321 and 4323 prior to their repeal by P.L. 89-44, § 401(a), are set forth below. SEC. 4323 (added 1958)-Continued (b) (revised 1959)-Continued In full. by a certification signed by the transferor or his agent or the transferee or his agent as to the actual value of the shares, certificates, or rights so transferred, and any corporation or transfer agent to whom such shares, certificates, or rights are presented shall be entitled to rely on such certification without further inquiry." Effective Date: November 1, 1959-The first day of the first calendar month beginning more than 10 days after the date of enactment (September 21, 1959). (Id., § 5(c), 73 Stat. 626.) June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: Effective Date: January 1, 1966. (Id., § 701(c)(1), 79 Stat. 157.) CH. 34, SUBCH. B, PART II-SALES OR TRANSFERS OF CERTIFICATES OF INDEBTEDNESS (Revised 1958-72 Stat. 1296): In full.......... (repealed) June 21, 1965, H.R 8371, P.L. 89-44, § 401(a), 79 Stat. 148: Repealed Part II of Subchapter B of Chapter 34 (as contained in in the revision of Chapter 34 by P.L. 85-859, § 141(a)).539 Effective Date: January 1, 1966. (Id., § 701(c)(1), 79 Stat. 157.) CH. 34, SUBCH. B, PART III-PROVISIONS COMMON TO SALES OR TRANSFERS OF CAPITAL STOCK AND CERTIFICATES OF INDEBTEDNESS (Revised 1958-72 Stat. 1297-1299): In full... -- June 21, 1965, H.R. 8371, P.L. 89-44, § 401(a), 79 Stat. 148: (repealed) Repealed Part III of Subchapter B of Chapter 34 (as contained in the revision of Chapter 34 by P.L. 85–859, § 141(a)). 540 539 Part II of Subchapter B of Chapter 34 (as revised by P.L. 85-859, § 141(a)), which had not been amended prior to its repeal by P.L. 89-44, § 401(a), read as follows (72 Stat. 1296): "PART II-SALES OR TRANSFERS OF CERTIFICATES OF INDEBTEDNESS "Sec. 4331. Imposition of tax. "Sec. 4332. Exemptions. "Sec. 4333. Cross references. "SEC. 4331. IMPOSITION OF TAX. "There is hereby imposed, on each sale or transfer of any certificates of indebtedness issued by a corporation, a tax at the rate of 5 cents on each $100 or fraction thereof of the face value. "SEC. 4332. EXEMPTIONS. "(a) BROKERS.-The tax imposed by section 4331 shall not apply to any delivery or transfer to a broker for sale, nor upon any delivery or transfer by a broker to a customer for whom and upon whose order he has purchased the certificates of indebtedness. "(b) INSTALLMENT PURCHASE OF OBLIGATIONS.-The tax imposed by section 4331 shall not apply to any instrument under the terms of which the obligee is required to make payment therefor in installments and is not permitted to make in any year a payment of more than 20 percent of the cash amount to which entitled upon maturity of the instrument. "(c) OTHER EXEMPTIONS.— "For other exemptions, see sections 4341, 4342, 4343, 4344, and 4382. "SEC. 4333. CROSS REFERENCES. "For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4345, 4381, and 4384; sections 4351 to 4353 inclusive; and subtitle F." 540 Part III of Subchapter B of Chapter 34 (as revised by P.L. 85-859, § 141(a)), which had not been amended prior to its repeal by P.L. 89–44, § 401(a), read as follows (72 Stat. 1297-1299); [Footnote 540 continued on following page] CH. 34 B III (repealed 1965)-—Continued Effective Date: January 1, 1966. (Id., § 701(c)(1), 79 Stat. 157.) Footnote 540-Continued. "PART III-PROVISIONS COMMON TO SALES OR TRANSFERS OF CAPITAL STOCK AND CERTIFICATES OF INDEBTEDNESS "Subpart A. Exemptions. "Subpart B. Miscellaneous provisions. "Subpart A-Exemptions "Sec. 4341. Transfers as security. "Sec. 4342. Fiduciaries and custodians. "Sec. 4343. Transfers by operation of law. "Sec. 4344. Certain other transfers. "Sec. 4345. Exemption certificates. "SEC. 4341. TRANSFERS AS SECURITY. "The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections "(1) COLLATERAL SECURITY.-To a lender as collateral security for money loaned thereon, if such collateral security is not actually sold, or by such lender as a return of such collateral security. "(2) SECURITY FOR PERFORMANCE.-To a trustee or public officer made pursuant to Federal or State law as security for the performance of an obligation, or by such trustee or public officer as a return of such security. "SEC. 4342. FIDUCIARIES AND CUSTODIANS. "The taxes imposed by section 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections— "(1) FIDUCIARIES.-From a fiduciary to his nominee, or from one nominee of the fiduciary to another nominee, provided that in each instance such instruments are to be held by the nominee for the same purpose as if retained by the fiduciary; or from the nominee to such fiduciary; or "(2) CUSTODIANS. (A) From the owner to a custodian if under a written agreement between the parties such instruments are to be held or disposed of by such custodian for, and subject at all times to the instructions of, the owner; or from such custodian to such owner; or "(B) From a custodian as specified in subparagraph (A) to a registered nominee of such custodian, or from one such nominee to another such nominee, provided that in each instance such instruments are to be held by the nominee for the same purpose as if retained by the custodian; or from such nominee to such custodian. "SEC. 4343. TRANSFERS BY OPERATION OF LAW. "(a) EXEMPT TRANSFERS.-The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections— "(1) DECEDENTS.-From a decedent to his executor or administrator. "(2) MINORS.-From a minor to his guardian, or from a guardian to his ward upon attaining majority. (3) INCOMPETENTS. From an incompetent to his committee or similar legal representative, or from a committee or similar legal representative to a former incompetent upon removal of disability. "(4) FINANCIAL INSTITUTIONS.-From a bank, trust company, financial institution, insurance company, or other similar entity, or nominee, custodian, or trustee therefor, to a public officer or commission, or person designated by such officer or commission or by a court, in the taking over of its assets, in whole or part, under Federal or State law regulating or supervising such institutions, nor upon redelivery or retransfer by any such transferee or successor thereto. "(5) BANKRUPTS.-From a bankrupt or person in receivership due to insolvency to the trustee in bankruptcy or receiver, from such receiver to such trustee, or from such trustee to such receiver, nor upon redelivery or retransfer by any such transferee or successor thereto. "(6) SUCCESSORS.-From a transferee under paragraphs (1) to (5), inclusive, to his successor acting in the same capacity, or from one such successor to another. "(7) FOREIGN GOVERNMENTS AND ALIENS. From a foreign country or national thereof to the United States or any agency thereof, or to the government of any foreign country, directed pursuant to the authority vested in the President by section 5(b) of the Trading With the Enemy Act, as amended by the First War Powers Act, 1941 (50 U.S.C. App. sec. 5). "(8) TRUSTEES.-From trustees to surviving, substituted, succeeding, or additional trustees of the same trust. [Footnote 540 continued on following page] |