
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1083]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
          Subchapter O--Gain or Loss on Disposition of Property
 
            PART VI--EXCHANGES IN OBEDIENCE TO S.E.C. ORDERS
 
Sec. 1083. Definitions


(a) Order of Securities and Exchange Commission

    For purposes of this part, the term ``order of the Securities and 
Exchange Commission'' means an order issued after May 28, 1938, by the 
Securities and Exchange Commission which requires, authorizes, permits, 
or approves transactions described in such order to effectuate section 
11(b) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 
79k(b)), which has become or becomes final in accordance with law.

(b) Registered holding company; holding company system; associate 
        company

    For purposes of this part, the terms ``registered holding company'', 
``holding company system'', and ``associate company'' shall have the 
meanings assigned to them by section 2 of the Public Utility Holding 
Company Act of 1935 (15 U.S.C. 79b(a)).

(c) Majority-owned subsidiary company

    For purposes of this part, the term ``majority-owned subsidiary 
company'' of a registered holding company means a corporation, stock of 
which, representing in the aggregate more than 50 percent of the total 
combined voting power of all classes of stock of such corporation 
entitled to vote (not including stock which is entitled to vote only on 
default or nonpayment of dividends or other special circumstances) is 
owned wholly by such registered holding company, or partly by such 
registered holding company and partly by one or more majority-owned 
subsidiary companies thereof, or by one or more majority-owned 
subsidiary companies of such registered holding company.

(d) System group

    For purposes of this part, the term ``system group'' means one or 
more chains of corporations connected through stock ownership with a 
common parent corporation if--
        (1) at least 90 percent of each class of the stock (other than 
    (A) stock which is preferred as to both dividends and assets, and 
    (B) stock which is limited and preferred as to dividends but which 
    is not preferred as to assets but only if the total value of such 
    stock is less than 1 percent of the aggregate value of all classes 
    of stock which are not preferred as to both dividends and assets) of 
    each of the corporations (except the common parent corporation) is 
    owned directly by one or more of the other corporations; and
        (2) the common parent corporation owns directly at least 90 
    percent of each class of the stock (other than stock, which is 
    preferred as to both dividends and assets) of at least one of the 
    other corporations; and
        (3) each of the corporations is either a registered holding 
    company or a majority-owned subsidiary company.

(e) Nonexempt property

    For purposes of this part, the term ``nonexempt property'' means--
        (1) any consideration in the form of evidences of indebtedness 
    owed by the transferor or a cancellation or assumption of debts or 
    other liabilities of the transferor (including a continuance of 
    encumbrances subject to which the property was transferred);
        (2) short-term obligations (including notes, drafts, bills of 
    exchange, and bankers' acceptances) having a maturity at the time of 
    issuance of not exceeding 24 months, exclusive of days of grace;
        (3) securities issued or guaranteed as to principal or interest 
    by a government or subdivision thereof (including those issued by a 
    corporation which is an instrumentality of a government or 
    subdivision thereof);
        (4) stock or securities which were acquired from a registered 
    holding company or an associate company of a registered holding 
    company which acquired such stock or securities after February 28, 
    1938, unless such stock or securities (other than obligations 
    described as nonexempt property in paragraph (1), (2), or (3)) were 
    acquired in obedience to an order of the Securities and Exchange 
    Commission or were acquired with the authorization or approval of 
    the Securities and Exchange Commission under any section of the 
    Public Utility Holding Company Act of 1935 (15 U.S.C. 79k(b));
        (5) money, and the right to receive money not evidenced by a 
    security other than an obligation described as nonexempt property in 
    paragraph (2) or (3).

(f) Stock or securities

    For purposes of this part, the term ``stock or securities'' means 
shares of stock in any corporation, certificates of stock or interest in 
any corporation, notes, bonds, debentures, and evidences of indebtedness 
(including any evidence of an interest in or right to subscribe to or 
purchase any of the foregoing).

(Aug. 16, 1954, ch. 736, 68A Stat. 317; Pub. L. 94-455, title XIX, 
Sec. 1901(a)(133), Oct. 4, 1976, 90 Stat. 1786.)


                               Amendments

    1976--Subsec. (a). Pub. L. 94-455 struck out ``49 Stat. 820;'' 
before ``15 U.S.C. 79k(b)''.
    Subsec. (b). Pub. L. 94-455 struck out ``49 Stat. 804;'' before ``15 
U.S.C. 79b(a)''.
    Subsec. (e)(4). Pub. L. 94-455 struck out ``49 Stat. 820;'' before 
``15 U.S.C. 79k(b)''.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 effective for taxable years beginning 
after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a 
note under section 2 of this title.
