,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #bchd  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #d1 #bjag,mr4    
,nolan introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,education & !
 ,work=ce1 & 9 addition to ! ,committees
 on ,ways & ,means1 & ! ,judici>y1 = a  
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to am5d 
! ,employee ,retirem5t ,income ,security
 ,act ( #aigd & ! ,int]nal ,rev5ue ,code
 ( #aihf to modify c]ta9 provisions     
relat+ to multiemploy] p5sions1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,keep+ ,am]ica's ,p5sion   
,promises ,act4  #b4 ,re/or+            
anti-cutback provisions ,section #bja ( 
! ,multiemploy] ,p5sion ,re=m ,act (    
#bjad 7division ,o ( ,public ,law       
#aac-bce7 & ! am5dm5ts made by su*      
section are repeal$1 & ! ,employee      
,retirem5t ,income ,security ,act (     
#aigd & ! ,int]nal ,rev5ue ,code ( #aihf

 %all be appli$ z if su* section &      
am5dm5ts _h nev] be5 enact$4  #c4       
,p>titions ( eligible multiemploy] plans
  7a7 ,9 g5]al ,section #dbcc ( !       
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adac71 z   
am5d$ by section #abb ( ! ,multiemploy] 
,p5sion ,re=m ,act ( #bjad 7division ,o 
( ,public ,law #aac-bce71 is am5d$ to   
read z foll[s3  #dbcc4 ,p>titions (     
eligible multiemploy] plans  7a7  7#a7  
,^u ! application by ! plan sponsor ( an
 eligible multiemploy] plan = a p>tition
 ( ! plan1 ! corporation may ord] a     
p>tition ( ! plan 9 accordance ) ?is    
section4 ,! corporation %all make a     
det]m9ation reg>d+ ! application1 9     
accordance ) regulations promulgat$ by !
 corporation1 n lat] ?an #bgj days      
aft]--  7,a7 ! date su* application 0   
fil$2 or  7,b7 if lat]1 ! date su*      
application 0 complet$4  7#b7 ,at lea/  
#ad days be=e submitt+ an application = 
p>tition ( a plan "u p>agraph 7#a71 !   
plan sponsor ( ! plan %all notify all   

p>ticipants & b5efici>ies ( su*         
application1 9 ! =m & mann] prescrib$ by
 regulations issu$ by ! corporation4    
7b7 ,= purposes ( ?is section1 a        
multiemploy] plan is an eligible        
multiemploy] plan if-- 7#a7 ! plan is 9 
critical /atus & is project$ to become  
insolv5t )9 ! mean+ ( section #dbde--   
7,a7 dur+ ! curr5t plan ye> or any ( !  
#ad succe$+ plan ye>s2 or  7,b7 dur+ !  
curr5t plan ye> or any ( ! #ai succe$+  
plan ye>s1 if ! plan has a ratio (      
inactive p>ticipants to active          
p>ticipants t exce$s #b to #a & ! fund$ 
p]c5tage ( ! plan is less ?an #hj p]c5t2
  7#b7 ! corporation det]m9es1 aft]     
consultation ) ! ,p>ticipant & ,plan    
,sponsor ,advocate select$ "u section   
#djjd1 t ! plan sponsor has tak5 7or is 
tak+ concurr5tly ) an application =     
p>tition7 all reasonable measures       
describ$ 9 section #dcb7;e77#c77;,a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf1 & has  
made 7or is mak+7 b5efit adju/m5ts "u   
section #dcb7;e77#h7 ( su* ,code to     

r$uce ! risk ( insolv5cy2  7#c7 #bj     
p]c5t or m ( ! am\nt by :i* !           
liabilities ( ! plan exce$ ! value (    
plan assets is attributable to ! s]vice 
( p>ticipants ^: employ]s--  7,a7 )drew 
f ! plan prior to ! date ( enactm5t ( ! 
,keep+ ,am]ica's ,p5sion ,promises ,act2
 &  7,b7 fail$ to pay 7or are del9qu5t )
 respect to pay+7 ! full am\nt ( !      
employ]'s )drawal liability "u section  
#dbja7;b77#a7 or z o!rwise det]m9$ "u an
 agreem5t ) ! plan2  7#d7 ! corporation 
reasonably expects t-- 7,a7 a p>tition (
 ! plan w r$uce ! corporation's expect$ 
long-t]m loss ) respect to ! plan2 &    
7,b7 a p>tition ( ! plan is necess>y = !
 plan to rema9 or become solv5t2 &  7#e7
 ! corporation c]tifies to ,congress t  
aft] p>tition ! corporation w cont9ue to
 h ! ability to meet exi/+ f9ancial     
assi/ance obligations to o!r plans      
7includ+ any liabilities associat$ )    
multiemploy] plans t are insolv5t or t  
are project$ to become insolv5t )9 #aj  
ye>s74  7c7  7#a7 ,a p>tition "u ?is    

section %all consi/ ( a transf] to !    
plan creat$ by ! p>tition ord] ( b5efits
 to :i* eligible p>ticipants &          
b5efici>ies 7 entitl$ "u ! plan t 0     
p>tition$1 9 an am\nt n to exce$ ! am\nt
 t w\ld be gu>ante$ "u section #djbb;,a 
if ! plan 7 insolv5t z ( ! date ( !     
p>tition ord]4  7#b7 ,! corporation's   
p>tition ord] %all provide = an annual  
transf] by ! corporation to ! plan      
creat$ by ! p>tition ord] ( an am\nt    
equal to ! ye>ly b5efits t w\ld be      
gu>ante$ "u section #djbb;,a to !       
eligible p>ticipants & b5efici>ies if ! 
plan 7 insolv5t z ( ! date ( ! p>tition 
ord]4  7#c7  7,a7 ,:]e practicable1 !   
initial transf] 9 accordance ) p>agraph 
7#b7 %all be complet$ at lea/ #fj days  
prior to ! plan ye> t imm$iately foll[s 
! p>tition />t date4 ,! p>tition ord]   
%all require t ! initial transf] be     
suffici5t to satisfy ! gu>ante$ b5efits 
9 ! fir/ plan ye> ( ! p>tition$ plan4   
7,b7 ,subsequ5t transf]s 9 accordance ) 
p>agraph 7#b7 %all be complet$ at lea/  

#fj days prior to ! fir/ day ( ea*      
succe$+ plan ye>4  7d7  7#a7  7,a7 ,!   
plan creat$ by ! p>tition ord] is a     
successor plan to :i* section #djbb;,a  
applies4  7,b7 ,at ! discretion ( ! plan
 sponsor1 ! plan creat$ by ! p>tition   
ord] may rema9 a "p ( ! plan t 0        
p>tition$ or be ma9ta9$ z a sep>ate     
plan4  7#b7  7,a7 ,! plan sponsor & !   
adm9i/rator ( an eligible multiemploy]  
plan prior to ! p>tition %all be ! plan 
sponsor & ! adm9i/rator1 respectively1 (
 ! plan creat$ by ! p>tition ord]1 &    
%all adopt reasonable proc$ures to r$uce
 adm9i/rative exp5ses & to coord9ate    
b5efit paym5ts & communications ) !     
p>ticipants & b5efici>ies 9 ! plan      
creat$ by ! p>tition ord]4  7,b7 ,b5efit
 paym5ts equal to ! am\nt ( an eligible 
p>ticipant or b5efici>y's gu>ante$      
b5efits %all be paid to su* p>ticipant  
or b5efici>y & may be--  7i7 paid       
sep>ately by ! plan creat$ by ! p>tition
 ord]2 or  7ii7 paid 9 a s+le1 mon?ly   
paym5t by ! plan t 0 p>tition$4  7#c7 ,9

 ! ev5t an employ] )draws f ! plan t 0  
p>tition$1 )drawal liability %all be    
comput$ "u section #dbja ) respect to   
bo? ! plan t 0 p>tition$ & ! plan creat$
 by ! p>tition ord]4  7e7 ,9 addition to
 ! paym5t ( gu>ante$ b5efits "u         
subsection 7d77#b77;,b71 ea* eligible   
p>ticipant or b5efici>y ( ! plan creat$ 
by ! p>tition ord] %all receive a mon?ly
 b5efit = ea* mon? ! b5efit is 9 pay    
/atus 9 an am\nt t--  7#a7 !            
corporation1 9 consultation ) !         
,p>ticipant & ,plan ,sponsor ,advocate1 
det]m9es to be fair to ! plan1 !        
p>ticipant or b5efici>y1 ! employ]s1 & !
 corporation2 &  7#b7 is at lea/ equal  
to ! less] (-- 7,a7 ! mon?ly            
non=feitable b5efit = su* p>ticipant or 
b5efici>y payable "u ! plan t 0         
p>tition$2 or  7,b7 #hj p]c5t ( !       
maximum b5efit comm5c+ at age #fe       
gu>ante$ "u section #djbb7;a7 =         
p>ticipants & b5efici>ies 9 t]m9at$ s+le
 employ] plans1 unr$uc$ = e>ly          
retirem5t4  ,su* mon?ly b5efit may be   

comb9$ ) ! mon?ly paym5t "u subsection  
7d77#b77;,b77ii74  7f7  7#a7 ,!         
corporation %all e/abli% a legacy fund =
 ! purposes ( fund+ ! adm9i/rative &    
b5efit co/s to ! corporation aris+ f    
p>titions "u ?is section1 z describ$ 9  
p>agraph 7#b74  7#b7 ,any adm9i/rative &
 b5efit co/s to ! corporation aris+ f a 
p>tition ord]$ "u ?is section 9 excess (
 am\nts available 9 su* legacy fund %all
 be paid f ! fund = basic b5efits       
gu>ante$ = multiemploy] plans4  7g7     
,only "o p>tition ord] %all be issu$ )  
respect to ea* eligible multiemploy]    
plan4  7h7 ,= purposes ( ?is subsection1
 ! t]m eligible p>ticipant or b5efici>y 
means a p>ticipant or b5efici>y ( an    
eligible multiemploy] plan t is         
p>tition$ 9 accordance ) a petition ord]
 "u ?is section1 & :o is an employee or 
b5efici>y ( an employee ( an employ] t  
is describ$ 9 subsection 7b77#c74  7i7  
,n lat] ?an #ad days aft] ! issuance ( a
 p>tition ord] "u ?is section1 !        
corporation %all provide notice ( su*   

ord] to ! ,committee on ,f9ance ( !     
,s5ate1 ! ,committee on ,heal?1         
,education1 ,labor1 & ,p5sions ( !      
,s5ate1 ! ,committee on ,education & !  
,work=ce ( ! ,h\se ( ,repres5tatives1 ! 
,committee on ,ways & ,means ( ! ,h\se (
 ,repres5tatives1 & to all eligible     
p>ticipants or b5efici>ies ^: gu>ante$  
b5efits w be paid directly or indirectly
 by ! plan creat$ by ! p>tition ord]4  4
  7b7 ,effective date ,! am5dm5ts made  
by subsection 7a7 %all apply ) respect  
to plan ye>s beg9n+ aft] ! date (       
enactm5t ( ?is ,act4  7c7 ,transf]s to  
legacy fund ,! ,secret>y ( ! ,treasury  
%all f "t to "t transf] f ! g5]al fund (
 ! ,treasury to ! legacy fund e/abli%$  
"u section #dbcc7;f77#a7 ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #adac7;f77#a77 7z  
am5d$ by subsection 7a77 am\nts equal to
 ! increase 9 rev5ues to ! ,treasury by 
reason ( ! am5dm5ts made by sections #f 
& #g ( ?is ,act4  7d7 ,transf]s betwe5  
funds ( ! ,,pbgc ,section #djje ( !     

,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #acje7 is   
am5d$ by add+ at ! end ! foll[+3  7i7   
7#a7 ,an eigh? fund is e/abli%$ "u      
section #dbcc7;f7 & cr$it$ ) ! am\nts   
describ$ 9 section #c7;c7 ( ! ,keep+    
,am]ica's ,p5sion ,promises ,act4  7#b7 
,not)/&+ subsection 7g71 ! corporation  
may transf] am\nts into ! legacy fund   
e/abli%$ "u section #dbcc7;f77#a7 f o!r 
funds e/abli%$ "u ?is section1 z !      
corporation det]m9es appropriate4  4    
#d4 ,employ] )drawals relat+ to         
multiemploy] plans ,! matt] prec$+      
p>agraph 7#a7 ( section #dbbe7;b7 ( !   
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #adje7;b77  
is am5d$ by ins]t+ 1 includ+ an employ] 
und]go+ liquidation "u *apt] #g ( title 
#aa1 ,unit$ ,/ates ,code1 or simil>     
provisions ( ,/ate law1 aft]            
dissolution14  #e4 ,priorities ( claims 
9 bankruptcy  7a7 ,9 g5]al ,section     
#ejg7;a7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$-- 7#a7 by r$esignat+    

p>agraphs 7#a7 ?r\gh #aj z p>agraphs    
7#b7 ?r\gh 7#aa71 respectively2  7#b7 by
 ins]t+ be=e p>agraph 7#b7 7z           
r$esignat$7 ! foll[+3  7#a7 ,fir/1      
)drawal liability det]m9$ "u "p #a (    
subtitle ,e ( title ,,iv ( ! ,employee  
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #acha et seq474  2 
7#c7 9 ! matt] prec$+ subp>agraph 7,a7 (
 p>agraph 7#b7 7z r$esignat$71 by /rik+ 
,fir/3 & ins]t+ ,second32  7#d7 9       
p>agraph 7#c7 7z r$esignat$71 by /rik+  
,second1 & ins]t+ ,?ird12  7#e7 9       
p>agraph 7#d7 7z r$esignat$71 by /rik+  
,?ird1 & ins]t+ ,f\r?12  7#f7 9 ! matt] 
prec$+ subp>agraph 7,a7 ( p>agraph 7#e7 
7z r$esignat$71 by /rik+ ,f\r?1 & ins]t+
 ,fif?12  7#g7 9 ! matt] prec$+         
subp>agraph 7,a7 ( p>agraph 7#f7 7z     
r$esignat$71 by /rik+ ,fif?1 & ins]t+   
,six?12  7#h7 9 ! matt] prec$+          
subp>agraph 7,a7 ( p>agraph 7#g7 7z     
r$esignat$71 by /rik+ ,six?1 & ins]t+   
,sev5?12  7#i7 9 p>agraph 7#h7 7z       
r$esignat$71 by /rik+ ,sev5?1 & ins]t+  

,eigh?12  7#aj7 9 ! matt] prec$+        
subp>agraph 7,a7 ( p>agraph 7#i7 7z     
r$esignat$71 by /rik+ ,eigh?1 & ins]t+  
,n9?12  7#aa7 9 p>agraph 7#aj7 7z       
r$esignat$71 by /rik+ ,n9?1 & ins]t+    
,t5?12 &  7#ab7 9 p>agraph 7#aa7 7z     
r$esignat$71 by /rik+ ,t5?1 & ins]t+    
,elev5?14  7b7 ,te*nical & con=m+       
am5dm5ts  7#a7 ,section #ejb7;i7 ( title
 #aa1 ,unit$ ,/ates ,code1 is am5d$ by  
/rik+ section #ejg7;a77#h7 & ins]t+     
section #ejg7;a77#i74  7#b7 ,section    
#ejc7;b77#a77;,b77i7 ( title #aa1 ,unit$
 ,/ates ,code1 is am5d$ by /rik+ section
 #ejg7;a77#h7 & ins]t+ section          
#ejg7;a77#i74  7#c7 ,section #ejg7;d7 ( 
title #aa1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ 7a77#a71 7a77#d71 7a77#e71    
7a77#f71 7a77#g71 7a77#h71 or 7a77#i7 & 
ins]t+ 7a77#b71 7a77#e71 7a77#f71       
7a77#g71 7a77#h71 7a77#i71 or 7a77#aj74 
7#d7 ,section #ebc7;,a7 ( title #aa1    
,unit$ ,/ates ,code1 is am5d$ by /rik+  
section #ejg7;a77#c7 or #ejg7;a77#h7 &  
ins]t+ section #ejg7;a77#d7 or          

#ejg7;a77#i74  7#e7 ,section #gbd (     
title #aa1 ,unit$ ,/ates ,code1 is      
am5d$-- 7,a7 9 subsection 7b77#b71 by   
/rik+ section #ejg7;a77#a77;,c7 or      
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#b77;,c7 or #ejg7;a77#c72 &    
7,b7 9 subsection 7f7-- 7i7 9 p>agraph  
7#a71 by /rik+ section #ejg7;a77#d7 &   
ins]t+ section #ejg7;a77#e72 &  7ii7 9  
p>agraph 7#b71 by /rik+ section         
#ejg7;a77#e7 & ins]t+ section           
#ejg7;a77#f74  7#f7 ,section #gbf7;b7 ( 
title #aa1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ p>agraph 7#a71 7#b71 7#c71    
7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 or  
7#aj7 ( section #ejg7;a7 & ins]t+       
p>agraph 7#b71 7#c71 7#d71 7#e71 7#f71  
7#g71 7#h71 7#i71 7#aj71 or 7#aa7 (     
section #ejg7;a74  7#g7 ,section        
#geb7;a7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$ by /rik+ section        
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#h7 ,section #gff (     
title #aa1 ,unit$ ,/ates ,code1 is      
am5d$--  7,a7 9 subsection 7h71 by /rik+

 section #ejg7;a77#b7 & ins]t+ section  
#ejg7;a77#c72 &  7,b7 9 subsection 7i7--
  7i7 9 p>agraph 7#a71 by /rik+ section 
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c72 &  7ii7 9 p>agraph 7#b71  
by /rik+ section #ejg7;a77#b7 & ins]t+  
section #ejg7;a77#c74  7#i7 ,section    
#ija ( title #aa1 ,unit$ ,/ates ,code1  
is am5d$ by /rik+ #ejg7;a77#b7 & ins]t+ 
#ejg7;a77#c74  7#aj7 ,section           
#idc7;b77#e7 ( title #aa1 ,unit$ ,/ates 
,code1 is am5d$ by /rik+ section        
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#aa7 ,section           
#aabc7;a77#a7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b71 #ejg7;a77#c71 or          
#ejg7;a77#h7 & ins]t+ section           
#ejg7;a77#c71 #ejg7;a77#d71 or          
#ejg7;a77#i74  7#ab7 ,section           
#aabi7;a77#i7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$--  7,a7 9 subp>agraph  
7,a71 by /rik+ section #ejg7;a77#c7 or  
#ejg7;a77#d7 & ins]t+ section           
#ejg7;a77#d7 or #ejg7;a77#e72  7,b7 9 ! 

matt] prec$+ clause 7i7 ( subp>agraph   
7,b71 by /rik+ section #ejg7;a77#a71    
#ejg7;a77#d71 #ejg7;a77#e71             
#ejg7;a77#f71 or #ejg7;a77#g7 & ins]t+  
section #ejg7;a77#b71 #ejg7;a77#e71     
#ejg7;a77#f71 #ejg7;a77#g71 or          
#ejg7;a77#h72  7,c7 9 ! matt] prec$+    
clause 7i7 ( subp>agraph 7,c71 by /rik+ 
section #ejg7;a77#h7 & ins]t+ section   
#ejg7;a77#i72 &  7,d7 9 subp>agraph     
7,d71 by /rik+ section #ejg7;a77#h7 &   
ins]t+ section #ejg7;a77#i74  7#ac7     
,section #abbb7;a77#d7 ( title #aa1     
,unit$ ,/ates ,code1 is am5d$ by /rik+  
section #ejg7;a77#a77;,b7 & ins]t+      
#ejg7;a77#b77;,b74  7#ad7 ,section      
#abbf7;b77#a7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#ae7 ,section           
#acbb7;a77#d7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#a77;,b7 & ins]t+ section      
#ejg7;a77#b77;,b74  7#af7 ,section      
#acbf7;b77#a7 ( title #aa1 ,unit$ ,/ates

 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#b7 & ins]t+ section           
#ejg7;a77#c74  7#ag7 ,section           
#acbh7;a77#b7 ( title #aa1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ section       
#ejg7;a77#h77;,c7 & ins]t+ section      
#ejg7;a77#i77;,c74  #f4 ,transaction tax
  7a7 ,9 g5]al ,*apt] #cf ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] sub*apt] ,b ! foll[+ new sub*apt]3
  ,c ,tax on ,trad+ ,transactions  ,sec4
 #ddge4 ,tax on trad+ transactions4     
#ddge4 ,tax on trad+ transactions  7a7  
,imposition ( tax ,!re is h]eby impos$ a
 tax on ea* cov]$ transaction ) respect 
to any security4  7b7 ,rate ( tax ,! tax
 impos$ "u subsection 7a7 ) respect to  
any cov]$ transaction %all be #j4jc     
p]c5t ( ! specifi$ base am\nt ) respect 
to su* cov]$ transaction4  7c7 ,specifi$
 base am\nt ,= purposes ( ?is section1 !
 t]m specifi$ base am\nt means-- 7#a7   
except z provid$ 9 p>agraph 7#b71 ! fair
 m>ket value ( ! security 7det]m9$ z ( !
 "t ( ! cov]$ transaction71 &  7#b7 9 ! 

case ( any paym5t describ$ 9 subsection 
7h71 ! am\nt ( su* paym5t4  7d7 ,cov]$  
transaction ,= purposes ( ?is section1 !
 t]m cov]$ transaction means--  7#a7    
except z provid$ 9 p>agraph 7#b71 any   
pur*ase if-- 7,a7 su* pur*ase occurs or 
is cle>$ on a facility locat$ 9 ! ,unit$
 ,/ates1 or  7,b7 ! pur*as] or sell] is 
a ,unit$ ,/ates p]son1 &  7#b7 any      
transaction ) respect to a security     
describ$ 9 subp>agraph 7,d71 7,e71 or   
7,f7 ( subsection 7e77#a71 if--  7,a7   
su* security is trad$ or cle>$ on a     
facility locat$ 9 ! ,unit$ ,/ates1 or   
7,b7 any p>ty ) rights "u su* security  
is a ,unit$ ,/ates p]son4  7e7 ,security
 & o!r def9itions ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m security 
means--  7,a7 any %>e ( /ock 9 a        
corporation1  7,b7 any p>tn]%ip or      
b5eficial own]%ip int]e/ 9 a p>tn]%ip or
 tru/1  7,c7 any note1 bond1 deb5ture1  
or o!r evid5ce ( indebt$ness1  7,d7 any 
evid5ce ( an int]e/ 91 or a d]ivative   
f9ancial in/rum5t ) respect to1 any     

security or securities describ$ 9       
subp>agraph 7,a71 7,b71 or 7,c71  7,e7  
any d]ivative f9ancial in/rum5t )       
respect to any curr5cy or commodity1 &  
7,f7 any o!r d]ivative f9ancial in/rum5t
 any paym5t ) respect to :i* is         
calculat$ by ref]5ce to any specifi$    
index4  7#b7 ,d]ivative f9ancial        
in/rum5t ,! t]m d]ivative f9ancial      
in/rum5t includes any option1 =w>d      
contract1 futures contract1 notional    
pr9cipal contract1 or any simil>        
f9ancial in/rum5t4  7#c7 ,specifi$ index
 ,! t]m specifi$ index means any "o or m
 ( any comb9ation (-- 7,a7 a fix$ rate1 
price1 or am\nt1 or  7,b7 a v>iable     
rate1 price1 or am\nt1  :i* is bas$ on  
any curr5t objectively det]m9able       
in=mation :i* is n )9 ! control ( any ( 
! p>ties to ! contract or in/rum5t & is 
n unique to any ( ! p>ties'             
circum/ances4  7#d7 ,treatm5t ( ex*anges
  7,a7 ,9 g5]al ,an ex*ange %all be     
treat$ z ! sale ( ! prop]ty transf]r$ & 
a pur*ase ( ! prop]ty receiv$ by ea*    

p>ty to ! ex*ange4  7,b7 ,c]ta9 deem$   
ex*anges ,9 ! case ( a di/ribution      
treat$ z an ex*ange = /ock "u section   
#cjb or #cca1 ! corporation mak+ su*    
di/ribution %all be treat$ z hav+       
pur*as$ su* /ock = purposes ( ?is       
section4  7f7 ,exceptions  7#a7         
,exception = initial issues ,no tax %all
 be impos$ "u subsection 7a7 on any     
cov]$ transaction ) respect to ! initial
 issuance ( any security describ$ 9     
subp>agraph 7,a71 7,b71 or 7,c7 (       
subsection 7e77#a74  7#b7 ,exception =  
c]ta9 trad$ %ort-t]m indebt$ness ,a     
note1 bond1 deb5ture1 or o!r evid5ce (  
indebt$ness :i*-- 7,a7 is trad$ on a    
trad+ facility locat$ 9 ! ,unit$ ,/ates1
 &  7,b7 has a fix$ maturity ( n m ?an  
#ajj days1  %all n be treat$ z describ$ 
9 subsection 7e77#a77;,c74  7#c7        
,exception = securities l5d+ arrangem5ts
 ,no tax %all be impos$ "u subsection   
7a7 on any cov]$ transaction ) respect  
to :i* ga9 or loss is n recogniz$ by    
reason ( section #ajeh4  7g7 ,by :om    

paid  7#a7 ,9 g5]al ,! tax impos$ by ?is
 section %all be paid by-- 7,a7 9 ! case
 ( a transaction :i* occurs or is cle>$ 
on a facility locat$ 9 ! ,unit$ ,/ates1 
su* facility1 &  7,b7 9 ! case ( a      
pur*ase n describ$ 9 subp>agraph 7,a7   
:i* is execut$ by a brok] 7z def9$ 9    
section #fjde7;c77#a77 :i* is a ,unit$  
,/ates p]son1 su* brok]4  7#b7 ,special 
rules = direct1 etc41 transactions ,9 ! 
case ( any transaction to :i* p>agraph  
7#a7 does n apply1 ! tax impos$ by ?is  
section %all be paid by--  7,a7 9 ! case
 ( a transaction describ$ 9 subsection  
7d77#a7-- 7i7 ! pur*as] if ! pur*as] is 
a ,unit$ ,/ates p]son1 &  7ii7 ! sell]  
if ! pur*as] is n a ,unit$ ,/ates p]son1
 &  7,b7 9 ! case ( a transaction       
describ$ 9 subsection 7d77#b7--  7i7 !  
payor if ! payor is a ,unit$ ,/ates     
p]son1 &  7ii7 ! payee if ! payor is n a
 ,unit$ ,/ates p]son4  7h7 ,c]ta9       
paym5ts treat$ z sep>ate transactions   
,except z o!rwise provid$ by !          
,secret>y1 any paym5t ) respect to a    

security describ$ 9 subp>agraph 7,d71   
7,e71 or 7,f7 ( subsection 7e77#a7 %all 
be treat$ z a sep>ate transaction =     
purposes ( ?is section1 includ+--  7#a7 
any net initial paym5t1 net f9al or     
t]m9at+ paym5t1 or net p]iodical paym5t 
) respect to a notional pr9cipal        
contract 7or simil> f9ancial in/rum5t71 
7#b7 any paym5t ) respect to any =w>d   
contract 7or simil> f9ancial in/rum5t71 
&  7#c7 any premium paid ) respect to   
any option 7or simil> f9ancial          
in/rum5t74  7i7 ,adm9i/ration ,!        
,secret>y %all c>ry out ?is section 9   
consultation ) ! ,securities & ,ex*ange 
,commission & ! ,commodity ,futures     
,trad+ ,commission4  7j7 ,guidance2     
regulations ,! ,secret>y %all-- 7#a7    
provide guidance reg>d+ su* in=mation   
report+ conc]n+ cov]$ transactions z !  
,secret>y deems appropriate1 &  7#b7    
prescribe su* regulations z are necess>y
 or appropriate to prev5t avoidance ( ! 
purposes ( ?is section1 includ+ ! use ( 
non-,unit$ ,/ates p]sons 9 su*          

transactions4  4  7b7 ,cl]ical am5dm5t  
,! table ( sub*apt]s = *apt] #cf ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to sub*apt]
 ,b ! foll[+ new item3  ,sub*apt] ,c4   
,tax on trad+ transactions  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to transactions made 
aft] ,decemb] #ca1 #bjag4