118 STAT. 1440 PUBLIC LAW 108–357—OCT. 22, 2004 any entity not described in this subparagraph or payments on any obligation issued by such an entity, ‘‘(F) Any security issued by a real estate investment trust. ‘‘(G) Any other arrangement as determined by the Sec retary. ‘‘(2) SPECIAL RULES RELATING TO STRAIGHT DEBT SECURI TIES.— ‘‘(A) IN GENERAL.—For purposes of paragraph (1)(A), securities meet the requirements of this paragraph if such securities are straight debt, as defined in section 1361(c)(5) (without regard to subparagraph (B)(iii) thereof). ‘‘(B) SPECIAL RULES RELATING TO CERTAIN CONTIN GENCIES.—For purposes of subparagraph (A), any interest or principal shall not be treated as failing to satisfy section 1361(c)(5)(B)(i) solely by reason of the fact that— ‘‘(i) the time of payment of such interest or prin cipal is subject to a contingency, but only if— ‘‘(I) any such contingency does not have the effect of changing the effective yield to maturity, as determined under section 1272, other than a change in the annual yield to maturity which does not exceed the greater of 1 4 of 1 percent or 5 percent of the annual yield to maturity, or ‘‘(II) neither the aggregate issue price nor the aggregate face amount of the issuer’s debt instruments held by the trust exceeds $1,000,000 and not more than 12 months of unaccrued interest can be required to be prepaid thereunder, or ‘‘(ii) the time or amount of payment is subject to a contingency upon a default or the exercise of a prepayment right by the issuer of the debt, but only if such contingency is consistent with customary commercial practice. ‘‘(C) SPECIAL RULES RELATING TO CORPORATE OR PART NERSHIP ISSUERS.—In the case of an issuer which is a corporation or a partnership, securities that otherwise would be described in paragraph (1)(A) shall be considered not to be so described if the trust holding such securities and any of its controlled taxable REIT subsidiaries (as defined in subsection (d)(8)(A)(iv)) hold any securities of the issuer which— ‘‘(i) are not described in paragraph (1) (prior to the application of this subparagraph), and ‘‘(ii) have an aggregate value greater than 1 per cent of the issuer’s outstanding securities determined without regard to paragraph (3)(A)(i). ‘‘(3) LOOK THROUGH RULE FOR PARTNERSHIP SECURITIES.— ‘‘(A) IN GENERAL.—For purposes of applying subclause (III) of subsection (c)(4)(B)(iii)— ‘‘(i) a trust’s interest as a partner in a partnership (as defined in section 7701(a)(2)) shall not be consid ered a security, and ‘‘(ii) the trust shall be deemed to own its propor tionate share of each of the assets of the partnership. ‘‘(B) DETERMINATION OF TRUST’S INTEREST IN PARTNER SHIP ASSETS.—For purposes of subparagraph (A), with
�
