U.S. Bancorp, Successor In Interest to West One Bancorp and Subsidiaries, formerly known as Moore Financial Group, Inc. - Page 20

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          announced in those cases does not apply to the time deposits and            
          CD's in this case.                                                          
               According to respondent, our precise holding in Security               
          Bank Minn. v. Commissioner, supra, was that section 1281 does not           
          apply with respect to short-term loans made by a bank to its                
          customers in the ordinary course of its business.  Respondent               
          asserts that IFNB's time deposits and CD's do not constitute                
          "loans made to customers", as that term was employed by Security            
          Bank Minn. (and Security State Bank v. Commissioner, supra).                
          Therefore, argues respondent, our holdings in those cases do not            
          apply to IFNB's short-term time deposits and CD's, even if we               
          decide that the holdings do apply to IFNB's loans (as we have               
          done).  As a result, concludes respondent, the short-term                   
          obligation rules can be applied to IFNB's short-term time                   
          deposits and CD's, without violating either the spirit or the               
          letter of Security Bank Minn. (or Security State Bank).                     
               In support of this argument, respondent notes that the Court           
          in Security Bank Minn. v. Commissioner, supra, considered in some           
          detail the meanings of the words "acquire" and "issue" (including           
          variants thereof).  This consideration, of course, was quite                
          appropriate, because the short-term obligation rules apply to               
          acquisition discount or original issue discount, depending on the           
          type of obligation involved.                                                







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