INSTALLMENT METHOD.

SEC. 412. INSTALLMENT METHOD. (a) Certain Evidences of Indebtedness Deemed To Be Payment.—Section 453(b) (relating to sales of realty and casual sales of personalty) is amended by adding at the end thereof the following new paragraph: “(3) Purchaser evidences of indebtedness payable on demand or readily tradable.—In applying this subsection, a bond or other 83 Stat. 609 evidence of indebtedness which is payable on demand, or which is issued by a corporation or a government or political subdivision thereof (A) with interest coupons attached or in registered form (other than one in registered form which the taxpayer establishes will not be readily tradable in an established securities market), or (B) in any other form designed to render such bond or other evidence of indebtedness readily tradable in an established securities market, shall not be treated as an evidence of indebtedness of the purchaser.” (b) Effective Date.—The amendment made by subsection (a) shall apply to sales or other dispositions occurring after May 27, 1969, which are not made pursuant to a binding written contract entered into on or before such date.