U.S. Bancorp, Successor In Interest to West One Bancorp and Subsidiaries, formerly known as Moore Financial Group, Inc. - Page 7

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          and CD's owned by IFNB are different from ordinary bank loans,7             
          respondent does not contest petitioner's assertion that the time            
          deposits (and impliedly, the CD's) arise in the ordinary course             
          of business, as a customary method used by banks to earn interest           
          on surplus funds.                                                           
          I.   Whether Summary Judgment Is Appropriate                                
               Summary judgment is intended to expedite litigation and                
          avoid unnecessary and expensive trials.  Florida Peach Corp. v.             
          Commissioner, 90 T.C. 678, 681 (1988).                                      
               Summary judgment is appropriate where there is no genuine              
          issue of material fact and decision may be rendered as a matter             
          of law.  Rule 121(b); Sundstrand Corp. v. Commissioner, 98 T.C.             

               7 There are factual differences between petitioner's                   
          consumer, commercial, and agricultural loans and its time                   
          deposits and CD's with banks.  The consumer, commercial, and                
          agricultural loans provided for periodic payments of interest,              
          monthly in most cases, quarterly in a few; as a result, the                 
          accrued but unpaid interest with respect to such loans held at              
          Dec. 31, 1986, amounted on the average to approximately 1 month's           
          worth of interest on each loan.  The CD's with banks provided for           
          the payment of interest only at maturity; as a result, the amount           
          of the accrual with respect to each such instrument was                     
          relatively larger.  As evidenced by the schedule, supra p. 5, at            
          1986 yearend, the remaining accrual period on the CD's, which               
          bore interest at rates ranging from 7.07 percent to 8.10 percent            
          per year, was, on the average, closer to 6 months than to 1                 
          month.  Although the time deposits with banks also provided for             
          one payment of interest at maturity, the remaining average                  
          accrual period on the time deposits was relatively much shorter             
          than for the CD's because of the shorter average period to                  
          maturity of the time deposits.                                              

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