### Question
What does applicable preferred stock mean?


### Answer
**Applicable preferred stock** has the following meaning in *12 U.S.C. § 5261*:

> any stock—


(1) which is preferred stock in—


(A) the Federal National Mortgage Association, established pursuant to the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.), or


(B) the Federal Home Loan Mortgage Corporation, established pursuant to the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.), and


  

(2) which—


(A) was held by the applicable financial institution on September 6, 2008, or


(B) was sold or exchanged by the applicable financial institution on or after January 1, 2008, and before September 7, 2008

#### Citation:
  - *12 U.S.C. § 5261*
  - Heading: **CHAPTER 52-EMERGENCY ECONOMIC STABILIZATION > SUBCHAPTER III-TAX PROVISIONS**

