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(A) In General.--Subsection (a) shall
apply if the distribution is substantially
disproportionate with respect to the
shareholder.
(B) Limitation.--This paragraph shall
not apply unless immediately after the
redemption the shareholder owns less than 50
percent of the total combined voting power of
all classes of stock entitled to vote.
(C) Definitions.--For purposes of this
paragraph, the distribution is substantially
disproportionate if--
(i) the ratio which the voting
stock of the corporation owned by the
shareholder immediately after the
redemption bears to all of the voting
stock of the corporation at such time,
is less than 80 percent of--
(ii) the ratio which the voting
stock of the corporation owned by the
shareholder immediately before the
redemption bears to all of the voting
stock of the corporation at such time.
* * *
(3) Termination of shareholder’s interest.--
Subsection (a) shall apply if the redemption is in
complete redemption of all of the stock of the
corporation owned by the shareholder.
(4) Redemption from noncorporate shareholder
in partial liquidation.--Subsection (a) shall
apply to a distribution if such distribution is--
(A) in redemption of stock held by a
shareholder who is not a corporation, and
(B) in partial liquidation of the distributing
corporation.
* * * * * * *
(c) Constructive Ownership of Stock.--
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