REGULATED INVESTMENT COMPANIES.

SEC. 229. REGULATED INVESTMENT COMPANIES. (a) Time for Mailing Certain Notices to Shareholders.—The following provisions (relating to notices to shareholders by regulated investment, companies) are amended by striking out “30 days”, wherever appearing therein, and inserting in lieu thereof “45 days”: (1) Section 852(b)(3)(C), (2) Section 852(b) (3) (D) (i), (3) Section 853(c), (4) Section 854(b) (2), and (5) Section 855(e). (b) Certain Redemptions by Unit Investment Trusts.—Section 852 (relating to taxation of regulated investment companies and their shareholders) is amended by adding at the end thereof the following new subsection: “(d) Distributions in Redemption of Interests in Unit Investment Trusts.—In the case of a unit investment trust— “(1) which is registered under the Investment Company Act of 1940 and issues periodic payment plan certificates (as defined in such Act), and “(2) substantially all of the assets of which consist of securities issued by a management company (as defined in such Act), section 562(c) (relating to preferential dividends) shall not apply to a distribution by such trust to a holder of an interest in such (rust in redemption of part or all of such interest, with respect to the net capital gain of such trust attributable to such redemption.” (c) Effective Dates.—The amendments made by subsection (a) shall apply to taxable years of regulated investment companies ending on or after the date of the enactment of this Art. The amendment made by subsection (b) shall apply to taxable years of regulated investment companies ending after December 31, 1963.