SECTION 6. DEFINITION OF

QUALIFIED INTERMEDIARY

.01 In General . For purposes of determining whether an intermediary is a disqualified person in the context of an LKE Program, the intermediary will not fail to be a qualified intermediary merely because the intermediary:

(1) is assigned the taxpayer’s rights in its agreements to sell relinquished properties that ultimately are not matched with replacement properties under the taxpayer’s LKE Program;

(2) is assigned the taxpayer’s rights in its agreements to buy replacement properties that ultimately are not matched with relinquished properties under the taxpayer’s LKE Program;

(3) receives funds with respect to the transfer of relinquished property that ultimately is not matched with replacement property under the taxpayer’s LKE Program; or

(4) pays funds with respect to the acquisition of replacement property that ultimately is not matched with relinquished property under the taxpayer’s LKE Program.

.02 Assignment Safe Harbor . The taxpayer’s assignment in the master exchange agreement to the intermediary of the taxpayer’s rights (but not necessarily its obligations) in some or all of its existing and future agreements to sell relinquished property and/or to purchase replacement property, and the taxpayer’s written notice of the assignment to the other party to each agreement to sell relinquished property and/or to purchase replacement property on or before the date of the relevant transfer of property, will be effective to satisfy the Assignment Safe Harbor and notice requirement under § 1.1031(k)–1(g)(4)(v).