12 U.S.C. 1717Income derived by a foreign central bank of issue from obligations of the United States or of any agency or instrumentality thereof (including beneficial interests, participations, and other instruments issued under section 302(c) of the Federal National Mortgage Association Charter Act ()) which are owned by such foreign central bank of issue, or derived from interest on deposits with persons carrying on the banking business, shall not be included in gross income and shall be exempt from taxation under this subtitle unless such obligations or deposits are held for, or used in connection with, the conduct of commercial banking functions or other commercial activities. For purposes of the preceding sentence the Bank for International Settlements shall be treated as a foreign central bank of issue.
Pub. L. 87–29, § 1(a)75 Stat. 64Pub. L. 89–809, title I, § 102(a)(4)(A)80 Stat. 1543(Added , , ; amended , , .)
Editorial Notes
Amendments
Pub. L. 89–80912 U.S.C. 17171966— exempted income derived from obligations of agencies or instrumentalities of the United States and income derived from interest on deposits with persons carrying on the banking business, inserted “(including beneficial interests, participations, and other instruments issued under section 302(c) of the Federal National Mortgage Association Charter Act ()),” and inserted sentence requiring the Bank for International Settlements to be treated as a foreign central bank of issue.
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Pub. L. 89–809section 864(c)(4)(B)(iii) of this titlesection 102(e)(1) of Pub. L. 89–809section 861 of this titleAmendment by applicable with respect to taxable years beginning after , except that in applying with respect to a binding contract entered into on or before , activities in the United States on or before such date in negotiating or carrying out such contract shall not be taken into account, see , set out as a note under .
Effective Date
Pub. L. 87–29, § 1(c)75 Stat. 64