An Act to amend the District of Columbia Income and Franchise Tax Act of 1947, as amended, and the District of Columbia Business Corporation Act, as amended, with respect to certain foreign corporations
PL 89-591 (H.R.11087), enacted 09/19/1966

812 
PUBLIC LAW 89-591-SEPT. 19, 1966 
[80 STAT. 
Public Law 89-591 
' ' 
' 
September 19, 1966 
A N A C T 
[H. R. 11087] 
T^ amend the District of Columbia Income and Franchise Tax Act of 1947, as 
amended, and the District of Columbia Business Corporation Act, as amended, 
with respect to certain foreign corporations. 
D.c. 
Foreign corpo-
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 2(b) 
rationV,''reai'^r^p- of title I I I of the District of Columbia Income and Franchise Tax 
erty investments. Act of 1947, as amended (61 Stat. 335, art. I, title I I I , sec. 2, as 
amended by 62 Stat. 207, ch. 246, sec. 3; 63 Stat. 130, ch. 146, title IV, 
sees. 403, 420; 71 Stat. 605, Public Law 85-281, sees. 1, 3; and 74 Stat. 
219, Public Law 86-522, sec. 1; D.C. Code 47-1557a(b)), is amended 
by adding at the end thereof the following new paragraph: 
" (17) FOREIGN CORPORATION REAL PROPERTY INVESTMENT INCOME.— 
Income derived by a foreign corporation authorized to invest in loans 
secured by real estate, which does not maintain any office, officer, agent, 
representative or employees for the purpose of making, maintaining, 
or liquidating such investment, in the District of Columbia, provided 
that the only activities of such foreign corporation in the District of 
Columbia, other than those of a liaison employee, are one or more of 
the following: 
"(A) the acquisition of loans (including the negotiation 
thereof) secured by mortgages or deeds of trust on real property, 
including leaseholds, situated in the District of Columbia pur-
suant to commitment agreements or arrangements made prior to 
or following the origination or creation of such loans: Provided, 
however, That nothing herein shall be deemed to permit servicing 
other than as permitted by subparagraph (D) of this para-
graph (17); 
"(B) the physical inspection and appraisal of property in the 
District of Columbia as security for mortgages or deed of trust; 
"(C) the ownership, modification, renewal, extension, transfer, 
or foreclosure of such loans, or the acceptance of substitute addi-
tional obligors thereon; 
"(D) the making, collecting, and servicing of loans solely 
through a person authorized to engage in the District of Columbia 
in the business of servicing real estate loans for investors; 
"(E) maintaining or defending any action or suit or any 
administrative or arbitration proceeding arising as a result of 
such loans; 
"(F) the acquisition of title to property which is the security 
for such a loan m the event of default on such loan, either by fore-
closure, sale, or agreement in lieu thereof; 
"(G) pendiiigliquidation of its investment within such period, 
not to exceed one year, as the Commissioners may by regulation 
prescribe, operating, maintaining, renting or otherwise dealing 
with, selling or disposing of, real property acquired by foreclo-
sure, sale, or by agreement in lieu thereof: Provided, That if, upon 
the expiration of the period prescribed by the Commissioners, such 
property has not been sold or otherwise disposed of, such foreign 
corporation shall be subject to tax on all of the income derived by 
the corporation arising out of its ownership of such property, but 
such liability shall not be construed as affecting the exclusion 
from gross income of income from other loans made or acquired 
by it m accordance with this paragraph (17). 
"Income derived from the ownership of real property and not 
excludible from gross income as provided in this paragraph (17) shall 
80 STAT. ] 
PUBLIC LAW 89-591-SEPT. 19, 1966 
813 
be reported to the Commissioners by the person servicing the corpora-
tion's loans in the District of Columbia or by a participating bank in 
the District of Columbia at such times and in such manner, together 
with such information, as the Commissioners may by regulation 
require, and if there be no such person servicing loans or participating 
bank, then the corporation shall itself make such report of income 
including any other income derived from District of Columbia sources 
which is includible in gross income under this article. Any person or 
Penalty. 
corporation who shall fail to report such income to the Commissioners, 
as herein provided, shall be guilty of a misdemeanor and shall be fined 
not more than $500. 
"As used herein, the term 'liaison employee' shall mean a person 1"^^^^,^°" ^"'" 
who does not engage in or make, maintain, or liquidate any investment 
of the foreign corporation and w^ho is engaged by the foreign corpora-
tion solely for the purpose of establishing and maintaining contacts 
with governments and international bodies and agencies thereof; 
arranging conferences for, receiving and furnishing legislative publi-
cations and other information or material of interest to, transmitting 
information for, and arranging transportation or other accommoda-
tions for, officers or other personnel of such foreign corporation wdthin, 
or to and from, the District of Columbia," 
SEC. 2. Section 99 of the District of Columbia Business Corpora-
tion Act (68 Stat. 219, ch. 269, sec. 99; D.C. Code 29-933) is amended 
by adding at the end thereof the following new subsections: 
"(c) No foreign corporation having income from loans excluded 
from gross income under section 2(b) (17) of title I I I of the District 
of Columbia Income and Franchise Tax Act of 1947, as amended, 
^'®' P- ^^2. 
shall be subject to the provisions of this Act. 
"(d) Nothing in subsection (c) of this section shall be construed as 
affecting the amenability of a foreign corporation to the service of 
any process, notice, or demand to which such corporation would be 
amenable without reference to the provisions of such subsection (c). 
"(e)(1) Any foreign corporation having income from loans ex-
cluded from gross income under section 2(b) (17) of title I I I of the 
District of Columbia Income and Franchise Tax Act of 1947, as 
amended, shall be deemed to have waived any immunity to service 
of process and suit in the courts of the District of Columbia. Any such 
foreign corporation shall appoint and maintain in the District of 
Columbia an agent for service of process, and shall register with the 
Commissioners of the District of Columbia the address of its principal 
office and the name and address of its agent for service of process in 
the District of Columbia, including any changes in such addresses. 
"(2) Whenever any such foreign corporation does not have an 
agent for service of process or such agent cannot be found with reason-
able diligence at his registered address, then the Commissioners of the 
District of Columbia shall be the agent for service of process for such 
corporation. Service of process on the Commissioners shall be made 
by delivery to, and leaving with them, or with any person having charge 
of their office, duplicate copies of the process, together with a fee, the 
amount of v/hich shall be fixed from time to time by the Commissioners 
but not in excess of $5. In the event of such service the Commissioners 
shall immediately cause one of such copies to be forwarded by certi-
fied or registered mail, addressed to such foreign corporation at its 
principal office as it appears on the records of the Commissioners. Any 
such service shall be returnable in not less than thirty days, unless the 
rules of the court issuing such process prescribe another period, in 
which case such prescribed period shall govern. 
"(3) Nothing contained in this subsection shall limit or affect the 
right to serve any process, notice of demand required or permitted 
65-300 0-67—54 
814 
PUBLIC LAW 89-592-SEPT. 19, 1966 
[80 STAT. 
Penalty. 
Foreign 
poration." 
Ante, p. 812. 
Effective date. 
by law to be served on a foreign corporation in any other manner 
now or hereafter permitted by law. 
"(4) Any foreign corporation which fails to comply with the re-
quirements of paragraph (1) of this subsection shall be guilty of a 
misdemeanor and shall be fined not more than $500. 
"(5) The Commissioners of the District of Columbia are authorized 
to make such rules and regulations as may be necessary to carry out 
the purpose of this subsection. 
"(f) As used herein, the term 'foreign corporation' having income 
from loans excluded from gross income under section 2(b) (17) of 
title III of the District of Columbia Income and Franchise Tax Act 
of 1947, as amended, shall include any foreign corporation subject to 
a tax only as a result of activities contemplated by subparagraph (G) 
of section 2(b) (17) of title I I I of such Act." 
SEC. 3. This Act shall take effect on the date of its enactment. 
Approved September 19, 1966. 
September 19, 1966 
[S. 33 54] 
Public Law 89-592 
AN ACT 
To amend the law establishing the revolving fund for expert assistance loans 
to Indian tribes. 
Indians. 
Loans. 
25 u s e 70n-l. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the appropria-
tion authorization in section 1 of the Act of November 4, 1963 (77 
Stat. 301), is hereby amended by changing "$900,000" to "$1,800,000". 
Approved September 19, 1966. 
J s ? > f .