12 U.S.C. § 5261 — Gain or loss from sale or exchange of cer-

Page 1829 TITLE 12—BANKS AND BANKING § 5261 sion’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Sta- bilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables. S. Con. Res. 21 (110th Congress), referred to in text, is S. Con. Res. 21, May 17, 2007, 121 Stat. 2590, which is not classified to the Code. SUBCHAPTER III—TAX PROVISIONS § 5261. Gain or loss from sale or exchange of cer- tain preferred stock (a) In general For purposes of title 26, gain or loss from the sale or exchange of any applicable preferred stock by any applicable financial institution shall be treated as ordinary income or loss. (b) Applicable preferred stock For purposes of this section, the term ‘‘appli- cable preferred stock’’ means any stock— (1) which is preferred stock in— (A) the Federal National Mortgage Asso- ciation, established pursuant to the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.), or (B) the Federal Home Loan Mortgage Cor- poration, established pursuant to the Fed- eral Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.), and (2) which— (A) was held by the applicable financial in- stitution on September 6, 2008, or (B) was sold or exchanged by the applica- ble financial institution on or after January 1, 2008, and before September 7, 2008. (c) Applicable financial institution For purposes of this section: (1) In general Except as provided in paragraph (2), the term ‘‘applicable financial institution’’ means— (A) a financial institution referred to in section 582(c)(2) of title 26, or (B) a depository institution holding com- pany (as defined in section 1813(w)(1) of this title). (2) Special rules for certain sales In the case of— (A) a sale or exchange described in sub- section (b)(2)(B), 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 the time of the sale or exchange, and (B) a sale or exchange after September 6, 2008, of preferred stock described in sub- section (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 dur- ing the period beginning on September 6, 2008, and ending on the date of the sale or ex- change of the preferred stock. (d) Special rule for certain property not held on September 6, 2008 The Secretary of the Treasury or the Sec- retary’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 finan- cial institution did not hold on such date, but the basis of which in the hands of the applica- ble financial institution at the time of the sale or exchange is the same as the basis in the hands of the person which held such stock on such date, or (2) the applicable financial institution is a partner in a partnership which— (A) held such stock on September 6, 2008, and later sold or exchanged such stock, or (B) sold or exchanged such stock during the period described in subsection (b)(2)(B). (e) Regulatory authority The Secretary of the Treasury or the Sec- retary’s delegate may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this section. (f) Effective date This section shall apply to sales or exchanges occurring after December 31, 2007, in taxable years ending after such date. (Pub. L. 110–343, div. A, title III, § 301, Oct. 3, 2008, 122 Stat. 3802.) Editorial Notes REFERENCES IN TEXT The Federal National Mortgage Association Charter Act, referred to in subsec. (b)(1)(A), is title III of act June 27, 1934, ch. 847, 48 Stat. 1252, which is classified generally to subchapter III (§ 1716 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1716 of this title and Tables. The Federal Home Loan Mortgage Corporation Act, referred to in subsec. (b)(1)(B), is title III of Pub. L. 91–351, July 24, 1970, 84 Stat. 451, which is classified gen- erally to chapter 11A (§ 1451 et seq.) of this title. For complete classification of this Act to the Code, see Short Title and Statement of Purpose note set out under section 1451 of this title and Tables. CHAPTER 53—WALL STREET REFORM AND CONSUMER PROTECTION Sec. 5301. Definitions. 5302. Severability. 5303. Antitrust savings clause. SUBCHAPTER I—FINANCIAL STABILITY 5311. Definitions. PART A—FINANCIAL STABILITY OVERSIGHT COUNCIL 5321. Financial Stability Oversight Council estab- lished. 5322. Council authority. 5323. Authority to require supervision and regula- tion of certain nonbank financial compa- nies. 5324. Registration of nonbank financial companies supervised by the Board of Governors. 5325. Enhanced supervision and prudential stand- ards for nonbank financial companies su- pervised by the Board of Governors and cer- tain bank holding companies. 5326. Reports. 5327. Treatment of certain companies that cease to be bank holding companies.