Page:United States Statutes at Large Volume 103 Part 1.djvu/577

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 549 " (b) PRINCIPLES USED IN PRESCRIBING REGULATIONS. — "(1) TREATMENT OF TAXABLE ASSET ACQUISITIONS. — In the case of any acquisition of assets to which section 381(a) does not apply, the regulations prescribed under subsection (a) shall— "(A) provide that Federal financial assistance shall be properly taken into account by the institution from which the assets were acquired, and "(B) provide the proper method of allocating basis among the assets so acquired (including rights to receive Federal financial assistance). "(2) OTHER TRANSACTIONS. — In the case of any transaction not described in paragraph (1), the regulations prescribed under subsection (a) shall provide for the proper treatment of Federal financial assistance and appropriate adjustments to basis or other tax attributes to reflect such treatment. "(3) DENIAL OF DOUBLE BENEFIT. —No regulations prescribed under this section shall permit the utilization of any deduction (or other tax benefit) if such amount was in effect reimbursed by nontaxable Federal financial assistance. "(c) FEDERAL FINANCIAL ASSISTANCE. — The purposes of this sec- tion, the term 'Federal financial gissistance' means— "(1) any money or other property provided with respect to a domestic building and loan association by the Federal Savings and Loan Insurance Corporation or the Resolution Trust Cor- poration pursuant to section 406(f) of the National Housing Act or section 21A of the Federal Home Loan Bank Act (or under any other similar provision of law), and "(2) any money or other property provided with respect to a bank or domestic building and loan association by the Federal Deposit Insurance Corporation pursuant to section 11(f) or 13(c) of the Federal Deposit Insurance Act (or under any other similar provision of law), regardless of whether any note or other instrument is issued in exchange therefor. " (d) DOMESTIC BUILDING AND LOAN ASSOCIATION. — For purposes of this section, the term 'domestic building and loan association' has the meaning given such term by section 7701(a)(19) without regard to subparagraph (C) thereof." (B) Subparagraph (B) of section 904(c)(2) of the Tax Reform Act of 1986 is hereby repealed. 26 USC 597 note. (C) The table of sections for part II of subchapter H of chapter 1 of such Code is amended by striking the item relating to section 597 and inserting the following: "Sec. 597. Treatment of transactions in which Federal financial assistance provid- ed. " (b) TECHNICAL AMENDMENTS.— (1) Section 904 of the Tax Reform Act of 1986 (other than subsection (c)(2)(B) thereof) is hereby repealed and the Internal 26 USC 597 note. Revenue Code of 1986 shall be applied as if the amendments made by such section had not been enacted. (2) The last sentence of paragraph (3) of section 4012(c) of the Technical and Miscellaneous Revenue Act of 1988 is amended to 26 USC 597 note. read as follows: "In the case of any bank or any institution treated as a domestic building and loan association for purposes of section 597 of the 1986 Code by reason of the amendment made by subsection (b)(2)(B), the amendments made by this subsection shall also 1r\ oi r>—.* 1

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