U.S. Bancorp, Successor In Interest to West One Bancorp and Subsidiaries, formerly known as Moore Financial Group, Inc. - Page 12

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               We consider respondent's arguments seriatim.  In so doing,             
          we explain why summary judgment is appropriate with respect to              
          IFNB's consumer, commercial, and agricultural loans but is not              
          appropriate with respect to its time deposits and CD's.                     
          III.  Respondent's First Argument:  Security Bank Minn. v.                  
                Commissioner Should Be Overruled                                      
               Respondent first asks the Court to reconsider its holding in           
          Security Bank Minn. v. Commissioner, supra, that section                    
          1281(a)(2) of the short-term obligation rules does not require a            
          bank "to accrue interest on the short-term loans made to                    
          customers in the ordinary course of its business."  Security Bank           
          Minn. v. Commissioner, 98 T.C. at 43.  In short, respondent here            
          argues, as in Security Bank Minn., that section 1281(a)(2)                  
          requires the accrual of interest on all short-term obligations              
          held by a bank--without regard to the type of obligations                   
          involved, or the manner in which the bank came to hold them.                
               Although respondent advances this argument with force and              
          cogency--and also tries to identify certain factual differences             
          between the loans at issue in this case and the loans considered            
          in Security Bank Minn. v. Commissioner, supra--we believe that              
          all respondent has done in advancing this argument is to ask us             
          to overrule Security Bank Minn., which we decline to do.10                  

               10 For example, we note that most of IFNB's consumer,                  
          commercial, and agricultural loans provided for payments of                 
          interest at monthly intervals, as well as at maturity, while the            

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