An Act to authorize the extension of certain naval vessel loans now in existence, and for other purposes
PL 90-224 (H.R.6167), enacted 12/26/1967

81 STAT.] 
PUBLIC LAW 90-224-DEC. 26, 1967 
729 
Public Law 90-224 
A N A C T 
December 26, 1967 
To authorize the extension of certain naval vessel loans now in existence and 
[H. R. 6167} 
new loans, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States 
of America 
in Congress assemhled^ That, notwith- 
Loln^^^enslon. 
standing section 7307 of-title 10, United Sta,tes Code, or any other 
7OA stat. 452. 
law, the President may extend on such terms and under such condi-
tions as he deems appropriate the loan of ships, previously authorized 
as indicated, as follow^s: (1) Argentina, three destroyers (Act of 
July 18, 1958 (72 Stat. 376)) ; (2) Brazil, two destroyers and two 
submarines (Act of July 18, 1958 (72 Stat. 376)); (3) Chile, two i8^7°8e^?878f" 
submarines and two destroyers (Act of July 18,1958 (72 Stat. 376)) ; 
(4) Colombia, one destroyer (Act of July 18, 1958 (72 Stat. 376)); 
(5) Federal Republic of Germany, one destroyer (Act of August 5, 
1953 (67 Stat. 363), as amended by Act of August 3, 1956 (70 Stat, 
so use app. 
967)) ; (6) Greece, one submarine (Act of August 5, 1953 (67 Stat. i878-i878d. 
363), as amended by Act of August 3, 1956 (70 Stat. 967)), two 
destroyers (Act of October 4, 1961 (75 Stat. 815)) ; (7) Korea, two J^^^'^^^^^f^'' 
destroyer escorts (Act of August 5,1953 (67 Stat. 363), as amended), 
*'" 
one destroyer and one destroyer escort (Act of October 4, 1961 (75 —
. 
Stat. 815)) ; (8) Portugal, two destroyer escorts (Act of August 5, 
1953 (67 Stat. 363), as amended by Act of August 3, 1956 (70 Stat. 
967)) ; (9) Spain, two destroyers (Act of August 5, 1953 (67 Stat. 
363), as amended by Act of August 3,1956 (70 Stat. 967)); (10) Peru, 
one destroyer (Act of July 18,1958 (72 Stat. 376)). 
SEC. 2. Notw^ithstanding section 7307 of title 10, United States Code, KSel^'R^ubHc 
or any other provision of law, the President may lend two destroyers of°c^hina.^^" 
to the Government of Korea and one destroyer to the Republic of 
China, in addition to any ships previously authorized to be loaned to 
these nations, with or without reimbursement and on such terms and 
under such conditions as the President may deem appropriate. All 
expenses involved in the activation, rehabilitation, and outfitting (in-
cluding repairs, alterations, and logistic support) of ships transferred 
under this section shall be charged to funds programed for the recip-
ient government as grant military assistance, or as reimbursable, 
under the provisions of the Foreign Assistance Act of 1961, as 
amended, or successor legislation. The authority of the President 
22 use' 2K 1 
to lend naval vessels under this section shall terminate on December 31, note. 
1969. 
SEC. 3. All new loans and loan extensions executed under this Act loa^f'^on-"' 
shall be for periods not exceeding five years, but the President may in d°uk^'''°"" 
his discretion extend such loans for an additional period of not more 
than five years. Any agreement for a new loan or for the extension 
of a loan executed under this Act shall be made subject to the condi-
tion that the agreement may be terminated by the President if he 
finds that the armed forces of the borrowing country have engaged, 
at any time after the date of such agreement, in acts of warfare 
against any country which is a party to a mutual defense treaty 
ratified by the United States. Any agreement for a new loan or for 
the extension of a loan executed pursuant to this Act shall be subject 
to the condition that the agreement will be immediately terminated 
upon a finding made by the President that the country with which 
such agreement was made has seized any United States fishing ves-
sel on account of its fishing activities in international waters, except 
that such condition shall not be applicable in any case governed by 
international agreement to which the United States is a party. All 
loans and loan extensions shall be made on the condition that they 
ions. 
730 
PUBLIC LAW 90-225-DEC. 27, 1967 
[81 STAT. 
Notice to 
Congress. 
may be terminated at an earlier date if necessitated by the defense 
requirements of the United States. 
SEC. 4. No loan may be made or extended under this Act unless the 
Secretary of Defense, after consultation with the Joint Chiefs of 
Staff, determines that such loan or extension is in the best interest 
of the United States. The Secretary of Defense shall keep the Con-
gress currently advised of all loans made or extended under this Act. 
SEC. 5. The President may promulgate such rules and regulations 
as he deems necessary to carry out the provisions of this Act. 
Approved December 26, 1967, 4:09 p.m. 
Public Law 90-225 
December 
[H. R. 
Taxes. 
27,1967 
4765] 
Bank Holding 
Company 
butions. 
26 u s e 
12 u s e 
note. 
distfi-
1102. 
1841 
80 Stat. 236. 
70 Stat. 139. 
AN ACT 
To amend the Internal Revenue Code of 19.14 \A'ith respect to the income tax 
treatment of certain distributions pursuant to the Bank Holding Company Act 
of 1956, as amended, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress oAsemhled^ That section 1102 
of the Internal Revenue Code of 1954 (relating to special rules for 
income tax treatment of distributions pursuant to the Bank Holding 
Company Act of 1956) is amended by adding at the end thereof the 
following new subsection: 
"(e) CERTAIN BANK HOLDING COMPANIES.—This part shall apply 
in respect of any company which becomes a bank holding company 
as a result of the enactment of the Act entitled 'An Act to amend the 
Bank Holding Company Act of 1956', approved July 1, 1966 (Public 
Law 89-485), with the following modifications: 
"(1) Subsections (a) (3) and (b) (3) of section 1101 shall not 
apply. 
"(2) Subsections (a) (1) and (2) and (b) (1) and (2) of sec-
tion 1101 shall apply in respect of distributions to shareholders of 
the distributing bank holding corporation only if all distributions 
\a each class of shareholders which are made— 
"(A) after April 12,1965, and 
"(B) on or before the date on which the Board of Gover-
nors of the Federal Reserve System makes its final certifica-
tion under section 1101 (e), 
are pro rata. For purposes of the precedin|^ sentence, any redemp-
tion of stock made in whole or in part with property other than 
money shall be treated as a distribution. 
"(3) In applying subsections (c) and (d) of section 1101 and 
ID,