Page:United States Statutes at Large Volume 122.djvu/3825

 12 2 STA T .380 2 PUBLIC LA W 110 – 3 4 3 —O CT. 3 , 2008 any a mou n tspr o vide dint h is Ac t sha l l not b e counted f or purposes of bud g et enforcement .TI T LE III — T AXPROV I S IO N S SEC.301 . GAINORL OSS F RO M SALE OR E X C H ANGE OF CER T AIN P RE - FERRE D STOC K . ( a )INGE NE RAL . —F or purposes of the Internal R evenue C ode of 1986, gain or loss from the sale or e x change of any applicable preferred stoc k by any applicable financial institution shall be treated as ordinary income or loss. (b) A P PL IC A B LE P RE F ERRE DSTO C K .—For purposes of this sec - tion, the term ‘ ‘applicable preferred stock ’ ’ means any stock— (1) w hich is preferred stock in— (A) the Federal N ational M ortgage Association, estab- lished pursuant to the Federal National Mortgage Associa- tion Charter Act (1 2U .S.C. 1 7 16etse q .), or ( B ) the Federal H ome L oan Mortgage Corporation, established pursuant to the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1 45 1 et seq.), and (2) which— (A) was held by the applicable financial institution on September 6, 2 0 08, or (B) was sold or exchanged by the applicable financial institution on or after J anuary 1, 2008, and before Sep- tember 7, 2008. (c) APPLICABLE FINANCIAL IN S TIT U TION.—For purposes of this section

(1) IN G ENERAL.— E xcept as provided in paragraph (2), the term ‘‘applicable financial institution’’ means— (A) a financial institution referred to in section 582(c)(2) of the Internal Revenue Code of 1986, or (B) a depository institution holding company (as defined in section 3 (w)(1) of the Federal D eposit Insurance Act (12 U.S.C. 1813(w)(1))). (2) SPECIAL RULES FOR CERTAIN SALES.—In the case of— (A) a sale or exchange described in subsection (b)(2)(B), an entity shall be treated as an applicable financial institu- tion only if it was an entity described in subparagraph (A) or (B) of paragraph (1) at the time of the sale or exchange, and (B) a sale or exchange after September 6, 2008, of preferred stock described in subsection (b)(2)(A), an entity shall be treated as an applicable financial institution only if it was an entity described in subparagraph (A) or (B) of paragraph (1) at all times during the period beginning on September 6, 2008, and ending on the date of the sale or exchange of the preferred stock. (d) SPECIAL RULE FOR CERTAIN PROPERT Y NOT HELD ON SEP- TE M BER 6, 2008.— T he Secretary of the Treasury or the Secretary’s delegate may extend the application of this section to all or a portion of the gain or loss from a sale or exchange in any case where— (1) an applicable financial institution sells or exchanges applicable preferred stock after September 6, 2008, which the applicable financial institution did not hold on such date, but Defin i t i o n . Definition. 12USC5 2 6 1.

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