The exception that fixed a cutoff date

(o)(1) Except as provided in paragraph (2), it shall be unlawful for any person to transfer or possess a machinegun. (2) This subsection does not apply with respect to— (A) a transfer to or by, or possession by or under the authority of, the United States or any department or agency thereof or a State, or a department, agency, or political subdivision thereof; or (B) any lawful transfer or lawful possession of a machinegun that was lawfully possessed before the date this subsection takes effect.

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What to notice

1. An additional law

   This provision amended title 18 of the U.S. Code. It added a possession-and-transfer restriction alongside the NFA’s tax and registration system in title 26.

2. Read both exceptions

   Paragraph (A) concerns government-authorized activity. Paragraph (B) preserves qualifying lawful possession and transfer of machine guns already lawfully possessed before the cutoff.

3. The effective date is elsewhere

   Section 110(c), on printed page 461 of the same law, made this provision effective on enactment: May 19, 1986. That is why this date became central to civilian machine gun transfers.

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