Page:United States Statutes at Large Volume 107 Part 1.djvu/468

 107 STAT. 442 PUBLIC LAW 103-66—AUG. 10, 1993 exceed the amount of the outstanding indebtedness (including accrued but unpaid interest) of the financial institution with respect to the property described in clause (iii) immediately before the acquisition referred to in clause (iii) or (v), whichever is applicable, and "(III) the present value (determined as of the time of the sale and by using the applicable Federal rate determined under section 1274(d)) of the maximimi amount payable pursuant to the financing that is determined by reference to the revenue, income, or profits derived from the property cannot exceed 30 percent of the total purchase price of the property (including the contingent payments), "(iii) PROPERTY TO WHICH SUBPARAGRAPH APPLIES.—Property is described in this clause if such property is foreclosure property, or is real property which— "(I) was acquired by the qualified organization from a financial institution which is in conservatorship or receivership, or from the conservator or receiver of such an institution, and "(II) was held by the financial institution at the time it entered into conservatorship or receivership. "(iv) FINANCIAL INSTITUTION.— For purposes of this subparagraph, the term 'financial institution' means— "(I) any financial institution described in section 581 or 591(a), "(II) any other corporation which is a direct or indirect subsidiary of an institution referred to in subclause (I) but only if, by virtue of being affiliated with such institution, such other corporation is subject to supervision and examination by a Federal or State agency which regulates institutions referred to in subclause (I), and "(III) any person acting as a conservator or receiver of an entity referred to in subclause (I) or (II) (or any government agency or corporation succeeding to the rights or interest of such person), "(v) FORECLOSURE PROPERTY.— For purposes of this subparagraph, the term 'foreclosure property* means any real property acquired by the financial institution as the result of having bid on such property at foreclosure, or by operation of an agreement or process of law, after there was a default (or a defaiilt was imminent) on indebtedness which such property secured.". 26 USC 514. (b) CONFORMING AMENDMENT. — Paragraph (9) of section 514(c) is amended— (1) by adding the following new sentence at the end of subparagraph (A): "For purposes of this paragraph, an interest in a mortgage shall in no event be treated as real property.", and (2) by striking the last sentence of subparagraph (B). 26 USC 514 note. (c) EFFECTIVE DATES. —

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