### Question
What is the definition of permitted investments?


### Answer
The definition of **permitted investments** is as follows in *26 U.S.C. § 860G*:

> any—



(A) cash flow investment,



(B) qualified reserve asset, or



(C) foreclosure property

#### Citation:
  - *26 U.S.C. § 860G*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART IV-REAL ESTATE MORTGAGE INVESTMENT CONDUITS**

