[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.7507-1]

[Page 554]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                          Judicial Proceedings
 
Sec. 301.7507-1  Banks and trust companies covered.

    (a) Section 7507 applies to any national bank, or bank or trust 
company organized under State law, a substantial portion of the business 
of which consists of receiving deposits and making loans and discounts, 
and which has--
    (1) Ceased to do business by reason of insolvency or bankruptcy, or
    (2) Been released or discharged from its liability to its depositors 
for any part of their deposit claims, and the depositors have accepted 
in lieu thereof a lien upon its subsequent earnings or claims against 
its assets either (i) segregated and held by it for benefit of the 
depositors or (ii) transferred to an individual or corporate trustee or 
agent who liquidates, holds or operates the assets for the benefit of 
the depositors.
    (b) As used in this section and Sec. Sec. 301.7507-2 to 301.7507-
11, inclusive:
    (1) The term bank, unless otherwise indicated by the context, means 
any national bank, or bank or trust company organized under State law, 
within the scope of section 7507.
    (2) The terms statute of limitations and limitations mean all 
applicable provisions of law (including section 7507) which impose, 
change, or affect the limitations, conditions, or requirements relative 
to the allowance of refunds and abatements or the assessment or 
collection of tax, as the case may be.
    (3) The term segregated assets includes transferred or trusteed 
assets, or assets set aside or earmarked, to all or a portion of which, 
or the proceeds of which, the depositors are absolutely or conditionally 
entitled.
    (4) The term ceased to do business means the bank no longer accepts 
deposits or makes loans and discounts, and is winding up its affairs and 
is in the process of liquidating its assets to pay depositors. A bank 
will not be considered to have ceased to do business on account of a 
transaction in which the bank--
    (i) Transfers assets and liabilities to a Bridge Bank in a transfer 
described in Sec. 1.597-4 of this chapter;
    (ii) Transfers assets and liabilities to any person in a transaction 
to which section 381(a) applies or in which the transferee receives 
property with a transferred basis;
    (iii) Transfers assets or liabilities to any person in a transaction 
in which Federal Financial Assistance (as defined in section 597) is 
provided to any party to the transaction, unless all the Federal 
Financial Assistance is deposit insurance under Sec. 301.7507-9(d); or
    (iv) Transfers assets or liabilities to any person in a transaction 
similar to any transaction described in paragraphs (b)(4)(i) through 
(iii) of this section. This paragraph (b)(4) applies to taxable years 
ending on or after April 22, 1992.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 8641, 60 FR 66105, Dec. 
21, 1995]