PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3657

"(iv) In the case of a financial institution to which
section 585 applies—

"(I) the term 'title 11 or similar case' means only
a case in which the applicable authority (which
shall be treated as the court in such case) makes
the certification described in subclause (II), and
"(II) clause (ii) shall apply to such institution,
except that for purposes of clause (ii)(III), the ap-
plicable authority must certify that the grounds set
forth in such clause (modified in such manner as
the Secretary determines necessary because such
institution is not an institution to which section
593 applies) exist with respect to such transferor or
will exist in the near future in the absence of
action by the applicable authority.
For purposes of this clause, the term 'applicable
authority' means the Comptroller of the Currency or
the Federal Deposit Insurance Corporation, or if nei-
ther has the supervisory authority with respect to the
transfer, the equivalent State authority.

"(v) For purposes of this subparagraph, in applying
section 593, the determination as to whether a corpora-
tion is a domestic building and loan association shall be
made without regard to section 7701(aX19)(CX"
(B) Subclause (I) of section 382(lX5)(F)(iii) of the 1986 Code
is amended by inserting "(as modified by section
368(a)(3)(D)(iv))" after "section 368(a)(3XD)(ii)".

(C)(i) The amendment made by subparagraph (A) shall 26 USC 368 note.
apply to acquisitions after the date of the enactment of this
Act and before January 1,1990.

(ii) The amendment made by subparagraph (B) shall 26 USC 382 note.
apply to any ownership change occurring after the date of
the enactment of this Act and before January 1, 1990.
(2) ASSISTANCE PAYMENTS.—

(A) Section 597(a) of the 1986 Code (as in effect before the
amendments made by section 904(b) of the Reform Act) is
amended by adding at the end thereof the following new
sentence: "Gross income of a bank does not include any
amount of money or other property received from the
Federal Deposit Insurance Corporation pursuant to sections
13(c), 15(cXD, and 15(cX2) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(f) and 1823 (c)(l) and (cX2)), regardless of
whether any note or other instrument is issued in exchange
therefor."

(B) Section 597(b) of the 1986 Code, as amended by subsec-
tion (cXD, is amended by adding at the end thereof the
following new subsection:

"(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(aX19) without regard
to subparagraph (C) thereof."

(C) Section 597(b) of the 1986 Code (as so in effect) is
amended by inserting "or bank" after "association".

(DXi) The heading for section 597 of the 1986 Code (as so
in effect) is amended by inserting "or FDIC" after "FSLIC".