California Revenue and Taxation Code

§ 17639

RTC § 17639 Effective Oct 10, 1999Div. 2 · Part 10 · Ch. 7 · Art. 1

Statute text

For purposes of subdivision (a) of Section 17637, a bond, debenture, note, or certificate or other evidence of indebtedness (hereinafter in this section referred to as “obligation”) acquired by a trust described in Section 401(a) of the Internal Revenue Code shall not be treated as a loan made without the receipt of adequate security if—

(a)The obligation is acquired—

(1)On the market, either (i) at the price of the obligation prevailing on a national securities exchange which is registered with the Securities and Exchange Commission, or (ii) if the obligation is not traded on such a national securities exchange, at a price not less favorable to the trust than the offering price for the obligation as established by current bid and asked prices quoted by persons independent of the issuer;

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Legislative history

Amended by Stats. 1999, Ch. 987, Sec. 42. Effective October 10, 1999.