PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3695

SEC. 6031. CERTAIN REPLEBGES PERMITTED.

(a) GENERAL RULE.—Section 458A(d) of the 1986 Code (relating to
pledges, etc., of installment obligations) shall not apply to any
pledge after December 17, 1987, of an installment obligation to
secure any indebtedness if such indebtedness is incurred to
refinance indebtedness which was outstanding on Decem-
ber 17, 1987, and which was secured on such date and all times
thereafter before such refinancing by a pledge of such installment
obligation.

(b) LIMITATION.—Subsection (a) shall not apply to the extent that
the principal amount of the indebtedness resulting from the
refinancing exceeds the principal amount of the refinanced indebted-
ness immediately before the refinancing.

(c) CERTAIN REFINANCINGS PERMITTED.—For purposes of subsec-
tion (a), if—

(1) a refinancing is attributable to the calling of indebtedness
by the creditor, and

(2) such refinancing is not with the creditor under the re-
financed indebtedness or a person related to such creditor,

such refinancing shall, to the extent the refinanced indebtedness
qualifies under subsections (a) and (b), be treated as a continuation
of such refinanced indebtedness.

SEC. 6032. TREATMENT OF INDIRECT HOLDINGS THROUGH TRUSTS
UNDER SECTION 448 OF THE 1986 CODE.

(a) GENERAL RULE.—Paragraph (2) of section 448(d) of the 1986
Code (defining qualified personal service corporation) is amended by
adding at the end thereof the following new sentence:

"To the extent provided in regulations which shall be prescribed
by the Secretary, indirect holdings through a trust shall be
taken into account under subparagraph (B)/'

(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to taxable years beginning after December 31, 1986.

SEC. 6033. DISASTER ASSISTANCE ACT PAYMENTS INCLUDED IN SPECIAL

RULE FOR TAXABLE YEAR OF INCLUSION.

(a) DISASTER ASSISTANCE PAYMENTS.—The second sentence of sec-
tion 451(d) of the 1986 Code (relating to special rule for crop insur-
ance proceeds or disaster payments) is amended by inserting "or
title II of the Disaster Assistance Act of 1988," after "the Agricul-
tural Act of 1949, as amended,".

(b) EFFECTIVE DATE.—The amendment made by paragraph (1)
shall apply to payments received before, on, or after the date of
enactment of this Act.

Subtitle C—Pensions and Employee Benefits

26 USC 453A
note.

26 USC 448 note.

26 USC 451 note.

SEC. 6051. PROVISIONS RELATING TO BENEFITS UNDER DISCRIMINA-
TORY PLANS.

(a) PROVISIONS NOT TO APPLY TO CHURCH PLANS.—Section 89(i) of
the 1986 Code is amended by adding at the end thereof the following
new paragraph:

"(4) CHURCH PLANS.—The term 'statutory employee benefit
plan' shall not include a plan maintained by a church for
church employees. For purposes of this paragraph, the term
'church' has the meaning given such term by section