92 STAT. 2398
PUBLIC LAW 95-565—NOV. 1, 1978
attained for two consecutive quarters positive net income and a freight labor cost to freight revenue ratio equal to the average such ratio for all Class I railroads in 1977, as determined pursuant to procedures adopted by the Corporation pursuant to regulations promulgated by the Association with the con',^, currence of the Finance Committee; "(B) be an employee benefit plan which is designed to invest primarily in employer securities; "(C) meets such other requirements (similar to requirements applicable to employee stock ownership plans as defined in sec26 USC 4975. tion 4975(e)(7) of the Internal Revenue Code of 1954) as the Secretary of the Treasury or his delegate may describe;
'• "(T>) have been approved by the Board of Directors of the \/„ • . Corporation to the extent and in the manner which may be "' ' ' ^"' required by the Corporation's articles of incorporation and bylaws ' -1_, then in effect; and " (E) have been prepared in consultation with, and been approved by, the Association and the Finance Committee. " (3) Notwithstanding any other provision of law, if a plan does not meet the requirements of section 401 of the Internal Revenue Code of 26 USC 401. 1954— "(A) stock transferred under paragraph (2) and allocated to < the account of any participant under paragraph (2) shall not be j considered income of the participant or his beneficiary under the ' Internal Revenue Code of 1954 until such stock or dividends are -J, !. ^v,-,*«,«'I if actually distributed or made available to the participant or his ',., f. beneficiary and, at such time, shall be taxable under section 72 of 26 USC 72. the Internal Revenue Code of 1954 (treating the participant or his beneficiary as having a basis of 0 in the stock); ' "(B) no amount shall be allocated to any participant under the plan in excess of the amount which might be allocated if the plan met the requirements of section 401 of the Internal Revenue Code of 1954; and "(C) the plan must meet the requirements of sections 410 and 26 USC 410, 415 of the Internal Revenue Code of 1954. 415. " (4) The Corporation shall adopt such terms and conditions governing the securities or interests therein to be transferred to the plan (including limitations on voting rights) as the Association, with the concurrence of the Finance Committee, determines are necessary to protect reasonably the interests of the United States in the litigation 45 USC 743. pursuant to section 303(c) of this Act and in the event of any action to further reorganize or restructure the Corporation's assets or capital structure. "(5) The Corporation, the Association, and a representative appointed by the Chairman of the Railway Labor Executives' Association as representative of all the classes or crafts of employees of the Corporation shall engage in negotiations to agree upon a plan in accordance with the provisions of this subsection. The parties shall incorporate their agreement into a written plan instrument specifying
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