Rev. Proc. 83-81

SECTION 1. BACKGROUND

Rev. Proc. 82-23, 1982-1 C.B. 474, amplifies Rev. Proc. 77- 37, 1977-2 C.B. 568. Rev. Proc. 77-37 contains rules for the issuance of advance rulings as to matters within the jurisdiction of the Reorganization Branch Of the Internal Revenue Service.

SEC. 2. PROCEDURE

Rev. Proc. 82-23 is superseded and Rev. Proc. 77-37 is amplified to include the following:

Solely for purposes of a reorganization otherwise qualifying under sections 368(a)(1)(G) and 368(a) (3)(D)(ii) of the Code the "continuity of business enterprise" requirement of section 1.368- 1(d) of the regulations is satisfied if the following requirements are met: (1) the acquiring corporation assumes all of the deposits of the acquired corporation; and (2) either (a) the acquiring corporation will continue to hold at least one-half of the fair market value of the assets, including mortgage and other loans, held by the acquired corporation at the time of the adoption of the plan of reorganization; or (b) the acquiring corporation continues the acquired corporation's historic business. With respect to requirement (2a) the disposition of assets by the acquiring corporation in the ordinary course of business will not be taken into account. Satisfaction of requirement (2b) will be determined upon all the facts and circumstances of the particular case.

SEC. 3. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 82-23 is superseded. Rev. Proc. 77-37 is amplified.

SEC. 4. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on November 14, 1983, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as any requests received thereafter.