Par. 16. Section 46.4701-1 is amended by: 1. Revising paragraphs (b)(3), (4), and (5). 2. Redesignating paragraph (e) as paragraph (e)(1). 3. Revising the paragraph heading of newly redesignated paragraph (e)(1). 4. Adding a new paragraph heading for paragraph (e). 5. Adding paragraph (e)(2). The revisions and additions read as follows:
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(b) * * *
(3) Registration-required obligation. The term registration-required obligation has the same meaning as in section 163(f) and § 1.163-5(a)(2)(i) of this chapter, except that the term does not include an obligation described in section 4701(b)(1)(B) or any obligation that is required to be registered under section 149(a), such as bonds that are tax-exempt under section 103. For purposes of determining whether an obligation is described in section 4701(b)(1)(B), the rules of § 1.163-5(c) of this chapter apply.
(4) Registered form. The term registered form has the same meaning as in § 1.163-5(b) of this chapter.
(5) Issuer —(i) In general. Except as provided in paragraph (b)(5)(ii) of this section, the term issuer is the person whose interest deduction would be disallowed solely by reason of section 163(f)(1).
(ii) Sponsor treated as issuer. A pass-through certificate (as defined in § 1.163-5(a)(3)(i)(B) of this chapter), a participation interest described in § 1.163-5(a)(3)(ii) of this chapter, or a regular interest in a REMIC, as defined in sections 860D and 860G and the regulations thereunder, is considered to be issued solely by the recipient of the proceeds from the issuance of the certificate or interest (the sponsor ). The sponsor is therefore liable for any excise tax under section 4701 that may be imposed with reference to the principal amount of the pass-through certificate, participation interest, or regular interest.
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(e) Applicability date —(1) In general. * * *
(2) Exception. Notwithstanding paragraph (e)(1) of this section, paragraphs (b)(3), (4), and (5) of this section apply to obligations issued after March 18, 2012. For the rules that apply to obligations issued on or before March 18, 2012, see § 46.4701-1 as contained in 26 CFR part 46, revised as of the date of the most recent annual revision.