26 USC 597 - Treatment of transactions in which Federal financial assistance provided

U.S Code last checked for updates: Aug 17, 2025

§ 597.

Treatment of transactions in which Federal financial assistance provided

(a)

General rule

(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

(3)

Denial of double benefit

(c)

Federal financial assistance

For purposes of this section, the term “Federal financial assistance” 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 Corporation pursuant to section 406(f) of the National Housing 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

(Added Pub. L. 97–34, title II, § 244(a), Aug. 13, 1981, 95 Stat. 255; amended Pub. L. 99–514, title IX, § 904(b)(1), Oct. 22, 1986, 100 Stat. 2385;

cite as: 26 USC 597