# Prop. Treas. Reg. § 1.1296-4: Characterization of certain banking income of foreign  banks as passive.

Proposed regulation, not in force. REG-115795-97, 63 FR 39, published 1998-01-02 <https://www.federalregister.gov/documents/1998/01/02/97-33984/general-rules-for-making-and-maintaining-qualified-electing-fund-elections>. Interprets 26 U.S.C. § 1296.

Par. 7 Section 1.1296-4(e) as proposed at 60 FR 20922 (April 28, 1995) is amended by adding a sentence at the end of the paragraph to read as follows:

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(e) Lending activities test. * * * An interbank deposit made in the ordinary course of a corporation's banking business will be treated as a loan for purposes of this section. For the effective date of this paragraph (e), see paragraph (k) of this section.