[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: 26CFR301.7507-3]

[Page 555]
 
                       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. 301.7507-3  Segregated or transferred assets.

    (a) In general. In a case involving segregated or transferred 
assets, it is not necessary, for application of section 7507, that the 
assets shall technically constitute a trust fund. It is sufficient that 
segregated assets be definitely separated from other assets of the bank 
and that transferred assets be definitely separated both from other 
assets of the bank and from other assets held or owned by the trustee or 
agent to whom assets of the bank have been transferred; that the bank be 
wholly or partially released from liability for repayment of deposits as 
such; and that the depositors have claims against the separated assets. 
Any excess of separated assets over the amount necessary for payment of 
such depositors will be available for tax collection after full payment 
of depositors' claims under the agreement against such assets. But see 
paragraph (a) of Sec. 301.7507-9.
    (b) Corporate transferees. Where the segregated assets are 
transferred to a separate corporate trustee or corporate agent, the 
assets and earnings therefrom are within the protection of the section, 
until full payment of depositors' claims against such assets and 
earnings, no matter by whom the stock of such corporation is held, and 
no matter whether the assets be liquidated or operated or held for 
benefit of the depositors.