Internal Revenue Code · 26 U.S.C.

§ 860D. REMIC defined

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 860D

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: October 22, 1986 by Pub. L. 99–514
Last amended: November 5, 1990 by Pub. L. 101–508
Amendments: 2 dated changes in the source credit
Length: 2 subsections · 474 words · about 2 min to read
Defines: 2 terms
Cross-references: cites 2; cited by 1 Code section and 9 other regulations
Regulations: 1 issued under this section

¶(a) General rule For purposes of this title, the terms “real estate mortgage investment conduit” and “REMIC” mean any entity—

¶(1) to which an election to be treated as a REMIC applies for the taxable year and all prior taxable years,

¶(2) all of the interests in which are regular interests or residual interests,

¶(3) which has 1 (and only 1) class of residual interests (and all distributions, if any, with respect to such interests are pro rata),

¶(4) as of the close of the 3rd month beginning after the startup day and at all times thereafter, substantially all of the assets of which consist of qualified mortgages and permitted investments,

¶(5) which has a taxable year which is a calendar year, and

¶(6) with respect to which there are reasonable arrangements designed to ensure that—

¶(A) residual interests in such entity are not held by disqualified organizations (as defined in section 860E(e)(5)), and

¶(B) information necessary for the application of section 860E(e) will be made available by the entity.

In the case of a qualified liquidation (as defined in section 860F(a)(4)(A)), paragraph (4) shall not apply during the liquidation period (as defined in section 860F(a)(4)(B)).

¶(b) Election

¶(1) In general

An entity (otherwise meeting the requirements of subsection (a)) may elect to be treated as a REMIC for its 1st taxable year. Such an election shall be made on its return for such 1st taxable year. Except as provided in paragraph (2), such an election shall apply to the taxable year for which made and all subsequent taxable years.

¶(2) Termination

¶(A) In general

If any entity ceases to be a REMIC at any time during the taxable year, such entity shall not be treated as a REMIC for such taxable year or any succeeding taxable year.

¶(B) Inadvertent terminations If—

¶(i) an entity ceases to be a REMIC,

¶(ii) the Secretary determines that such cessation was inadvertent,

¶(iii) no later than a reasonable time after the discovery of the event resulting in such cessation, steps are taken so that such entity is once more a REMIC, and

¶(iv) such entity, and each person holding an interest in such entity at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treatment of such entity as a REMIC or a C corporation) as may be required by the Secretary with respect to such period,

then, notwithstanding such terminating event, such entity shall be treated as continuing to be a REMIC (or such cessation shall be disregarded for purposes of subparagraph (A)) whichever the Secretary determines to be appropriate.

(Added Pub. L. 99–514, title VI, § 671(a), Oct. 22, 1986, 100 Stat. 2311; amended Pub. L. 100–647, title I, § 1006(t)(2)(A), (16)(A), (19), Nov. 10, 1988, 102 Stat. 3419, 3423, 3426; Pub. L. 101–508, title XI, § 11704(a)(8), Nov. 5, 1990, 104 Stat. 1388–518.)

Terms defined here

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real estate mortgage investment conduit § 860D(a)
REMIC § 860D(a)

Regulations under this section

Treasury regulations (26 CFR) issued under § 860D

§ 1.860D-1 Definition of a REMIC.

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 2 other sections

Cited by 1 Code section

§ 860G(a)(8)(B) Other definitions and special rules

Cited in 9 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

November 5, 1990Amended by Pub. L. 101–508Parts changed in 1990: (a)
November 10, 1988Amended by Pub. L. 100–647Parts changed in 1988: (a) (a)(4) (a)(6)
October 22, 1986Added by Pub. L. 99–514

Where it sits in the Code

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

1990—Subsec. (a). Pub. L. 101–508 inserted closing parenthesis before period at end.

1988—Subsec. (a). Pub. L. 100–647, § 1006(t)(19), inserted at end “In the case of a qualified liquidation (as defined in section 860F(a)(4)(A)), paragraph (4) shall not apply during the liquidation period (as defined in section 860F(a)(4)(B).”

Subsec. (a)(4). Pub. L. 100–647, § 1006(t)(2)(A)(i), substituted “3rd month beginning after” for “4th month ending after”.

Pub. L. 100–647, § 1006(t)(2)(A)(ii), substituted “and at all times thereafter” for “and each quarter ending thereafter”.

Subsec. (a)(6). Pub. L. 100–647, § 1006(t)(16)(A), added par. (6).

Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1006(t)(2)(B), Nov. 10, 1988, 102 Stat. 3419, provided that: “The amendment made by subparagraph (A)(ii) [amending this section] shall take effect on January 1, 1988.”

Pub. L. 100–647, title I, § 1006(t)(16)(D)(i), Nov. 10, 1988, 102 Stat. 3425, provided that: “The amendments made by subparagraph (A) [amending this section] shall apply in the case of any REMIC where the start-up day (as defined in section 860G(a)(9) of the 1986 Code, as in effect on the day before the date of the enactment of this Act [Nov. 10, 1988]) is after March 31, 1988; except that such amendments shall not apply in the case of a REMIC formed pursuant to a binding written contract in effect on such date.”

Amendment by section 1006(t)(2)(A)(i), (19) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.