An Act to amend section 1237 of the Internal Revenue Code of 1954
PL 84-495 (H.R.6712), enacted 04/27/1956

118 
PUBLIC LAW 493-APR. 27, 1956 
[70 
S T A T . 
of such attendance but in no event more than two years. 
Such subse-
quent period of service shall commence upon the cessation of such 
attendance and of any further continuous period of training duty 
for which no tuition and fees are paid by the Service and which is 
part of the officer's prescribed formal training program, whether such 
further training is at a Service facility or otherwise. 
The Surgeon 
General may waive, in whole or in part, any reimbursement which 
may be required by this subsection upon a determination that such 
reimbursement would be inequitable or would not be in the public 
interest. 
Approved April 27, 1956. 
Public Law 493 
CHAPTER 212 
April 27. 1956 
JOINT RESOLUTION 
[H. J. Res. 444] 
(ji^ authorize and request the Presitlent to issue a proclamation in connection 
with the centennial of the birth of Woodrow Wilson. 
Woodrow Wilson 
Centennial C e 1 e-
b r a t i o n Commis-
sion. 
Proclamation. 
Resolved hy the Senate and House of Representatives 
of the United 
States of Ainerica in Congress assembled^ That the joint resolution 
entitled "Joint resolution to establish the Woodrow Wilson Centennial 
Celebration Commission, and for other purposes", approved August 
30, 1954 (68 Stat. 964), is amended by adding at the end thereof the 
following new section: 
"SEC. 6. The President is authorized and requested to issue a procla-
mation, as soon as practicable in the year 1956, inviting the people of 
the United States to observe the centennial anniversary of the birth 
of Woodrow Wilson with appropriate ceremonies and activities during 
that year." 
Approved April 27, 1956. 
Public Law 494 
CHAPTER 213 
AN ACT 
April 27, 1956 
[s- 2755] 
rpy designate the reservoir above the Monticello Dam in California as Lake 
Berryessa. 
Lake Berryessa. 
Be it ena,cted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the reservoir 
located above the Monticello Dam in Napa County, California, shall 
hereafter be know n as Lake Berryessa, and any law, regulation, docu-
ment, or record of the United States in which such reservoir is 
designated or referred to shall be held to refer to such reservoir under 
and by the name of Lake Berryessa. 
Approved April 27, 1956. 
April 2 7, 1956 
[H. R. 6712] 
Public Law 495 
CHAPTER 214 
AN ACT 
To amend section 1237 of the Internal Revenue Code of 1954. 
Taxes. 
Capital gains. 
68A Stat. 330. 
26 u s e 1237. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That section 1237 (a) 
of the Internal Kevenue Code of 1954 is amended by striking out "other 
than a corporation" and inserting: "(including corporations only if 
no shareholder directly or indirectly holds real property for sale to 
70 S T A T . ] 
PUBLIC LAW 497-APR. 30, 1956 
119 
customers in the ordinary course of trade or business and only in the 
case of property described in the last sentence of subsection (b) (3))". 
SEO. 2. Section 1237 (b) (3) of the Internal Eevenue Code of 1954 
is amended as follows: 
(a) In subparagraph (A) strike out "water or sewer facilities" and 
insert: "water, sewer, or drainage facilities". 
(b) At the end of paragraph (3) insert "The requirements of sub-
paragraphs (B) and (C) shall not apply in the case of property ac-
quired through the foreclosure of a lien thereon which secured the 
payment of an indebtedness to the taxpayer or (in the case of a cor-
poration) to a creditor who has transferred the foreclosure bid to 
the taxpayer in exchange for all of its stock and other consideration 
and in the case of property adjacent to such property if 80 percent 
of the real property owned by the taxpayer is property described in 
the first part of this sentence.". 
SEC. 3. This Act shall apply to all taxable years beginning after 
December 31,1954. 
Approved April 27, 1956. 
Nonapplicability. 
Effective date. 
Public Law 496 
CHAPTER 215 
AN ACT 
To amend section 5146 of the Revised Statutes, as amended, relating to the 
qualifications of directors of national banking associations. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 5146 
of the Revised Statutes, as amended (U. S, C, 1952 edition, title 12, 
sec. 72), is amended by deleting therefrom the words "three-fourths", 
"fifty" and "fifty-mile", and substituting therefor the words "two-
thirds", "one hundred" and "one-hundred-mile", respectively. 
Approved April 27, 1956. 
April 27, 1956 
[S. 1736] 
41 Stat. 1199. 
April 30, 1956 
[H. R. 9428] 
Public Law 497 
CHAPTER 223 
AN ACT 
To provide for the procurement of medical and dental officers of the Army, 
Navy, Air Force, and Public Health Service, and for other purposes. 
~'' 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That sections 201 M^'ic'i^i^^cJ/^c"? 
and 202 of the Army-Navy-Public Health Service Medical Officer Procurement Act of 
Procurement Act of 1947 (61 Stat. 777) are amended to read as *%^'ysc"9'tl'^nd 
follows: 
"SEC. 201. (a) Subject to any limitation on the commissioned 
strength of the Army, Navy, and Air Force prescribed by law, the 
President, by and with the advice and consent of the Senate, may 
make appointments in permanent grades of first lieutenant through 
colonel in the Medical and Dental Corps of the Regular Army, 
lieutenant (junior grade) through captain in the Medical and Dental 
Corps of the Regular Navy, and first lieutenant through colonel for 
officers appointed with a view to designation as medical officers or 
dental officers in the Regular Air Force, in such numbers as the needs 
of the services may require. 
Such appointments shall be made only 
from qualified doctors of medicine and doctors of dentistry who are 
citizens of the United States and who have such other qualifications 
as the Secretary concerned may prescribe for his service. 
note ,91b and note. 
Appointments in 
permanent grades..