SECTION 1. PURPOSE

This notice requests public comments on Treas. Reg. § 1.166–2(d)(1) and (3) (the “Conclusive Presumption Regulations”). In particular, comments are sought on whether 1) changes that have occurred in bank regulatory standards and processes since adoption of the Conclusive Presumption Regulations require amendment of those regulations, and 2) application of the Conclusive Presumption Regulations continues to be consistent with the principles of section 166. Comments are also sought on the types of entities that are permitted, or should be permitted, to apply a conclusive presumption of worthlessness.