Page:United States Statutes at Large Volume 102 Part 4.djvu/689

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3659

"(C) there shall be no limit on the number of years in the recognition period, and "(D) section 382(h) shall be applied without regard to paragraph (3)(B) thereof. "(5) DEFINITIONS AND SPECIAL RULES.—For purposes of this subsection— "(A) APPLICABLE FINANCIAL INSTITUTION.—The term 'applicable financial institution' means the domestic building and loan association or bank the financial condition of which was determined by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation to require the financial assistance described in subsection (a). "(B) DETERMINATION DATE.—The term 'determination date' means the date of the determination under subparagraph (A). Except as provided by the Secretary, any subsequent revision or modification of such determination shall be treated as made on the original determination date. "(C) TAXABLE ASSET ACQUISITIONS.—

"(i) IN GENERAL.—In the case of any acquisition of the assets of any applicable financial institution to which section 381 does not apply— "(I) paragraph (1) shall not apply to any amounts excludable under subsection (a) which are payments made at the time of the acquisition to the person acquiring such assets, and "(II) rights to receive future payments excludable under subsection (a) in connection with the acquisition shall be treated as provided in clause (ii). "(ii) TREATMENT OF FUTURE PAYMENTS.—

"(I) IN GENERAL.—Rights to receive future payments described in clause (i)(H) shall be treated as assets to which basis is allocated. "(II) RECOVERY OF BASIS.—Any basis allocated under subclause (I) shall be recovered in such manner as the Secretary may provide, but in no event shall the amount recovered for any taxable year beginning before the taxable year in which the rights expire exceed the aggregate payments received with respect to such rights for all taxable years reduced by the amount of basis recovered with respect to such rights in preceding taxable years. "(Ill) APPLICATION OF PARAGRAPH (1).—Paragraph (1) shall apply to payments described in subclause (I) in a t£Lxable year only to the extent such payments exceed the amount of basis recovered in such taxable year. "(D) TREATMENT OF REPAYMENTS.—If a taxpayer repays an amount to which paragraph (1) applied in a preceding taxable year, there shall be allowed as a deduction for the taxable year of repayment an amount equal to the reduction in tax attributes under paragraph (1) attributable to the amount repaid. "(E) CARRYOVERS.—If 50 percent of the amount excludable under subsection (a) for any taxable year exceeds the

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