### Question
How is the "passive real estate ownership" defined?


### Answer
The term **passive real estate ownership** is defined in *12 U.S.C. § 4742* as follows -

> ownership of real estate for the purpose of deriving income from speculation, trade, or rental, except that such term shall not include—


(A) the ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate (other than the business of passive ownership of real estate)

#### Citation:
  - *12 U.S.C. § 4742*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER II-SMALL BUSINESS CAPITAL ENHANCEMENT**

