SECTION 9. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2002–9 is modified and amplified to include the accounting method change provided by this revenue procedure.

DRAFTING INFORMATION

The principal author of this revenue procedure is Timothy Sebastian of the Office of the Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure, contact Mr. Sebastian (202) 622–7417 (not a toll-free call).

4.02(2) through (6) of Rev. Proc. 97–27 do not apply to a bank that makes the change for either its first or second taxable year ending on or after December 31, 2006.

.03 If a bank with 6 or more years of collection experience wants to change its method of accounting for uncollected interest to the safe harbor method provided in SECTION 4 of this revenue procedure, the bank is required to follow the automatic change in method of accounting provisions of Rev. Proc. 2002–9 (or its successor), with the following modifications:

(1) the scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply to a bank that makes the change for either its first or second taxable year ending on or after December 31, 2006; and

(2) the designated automatic accounting change number for changes in method of accounting made pursuant to the revenue procedure is 108.