26 USC 597 - Treatment of transactions in which Federal financial assistance provided

(a) General rule 
The treatment for purposes of this chapter of any transaction in which Federal financial assistance is provided with respect to a bank or domestic building and loan association shall be determined under regulations prescribed by the Secretary.
(b) Principles used in prescribing regulations 

(1) Treatment of taxable asset acquisitions 
In the case of any acquisition of assets to which section 381 (a) does not apply, the regulations prescribed under subsection (a) shall
(A) provide that Federal financial assistance shall be properly taken into account by the institution from which the assets were acquired, and

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(B) provide the proper method of allocating basis among the assets so acquired (including rights to receive Federal financial assistance).
(2) Other transactions 
In the case of any transaction not described in paragraph (1), the regulations prescribed under subsection (a) shall provide for the proper treatment of Federal financial assistance and appropriate adjustments to basis or other tax attributes in connection with such assistance.
(3) Denial of double benefit 
No regulations prescribed under this section shall permit the utilization of any deduction (or other tax benefit) if such amount was in effect reimbursed by nontaxable Federal financial assistance.
(c) Federal financial assistance 
For purposes of this section, the term Federal financial assistance means
(1) any money or other property provided with respect to a domestic building and loan association by the Federal Savings and Loan Insurance Corporation or the Resolution Trust Corporation pursuant to section 406(f) of the National Housing Act or section 21A of the Federal Home Loan Bank Act (or under any other similar provision of law), and
(2) any money or other property provided with respect to a bank or domestic building and loan association by the Federal Deposit Insurance Corporation pursuant to section 11(f) or 13(c) of the Federal Deposit Insurance Act (or under any other similar provision of law),

regardless of whether any note or other instrument is issued in exchange therefor.

(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 (a)(19) without regard to subparagraph (C) thereof.