Section 2. DEFINITIONS

01. Scope of Definitions. (A) In General. Unless specifically modified in this agreement, all terms used in this agreement have the same meaning as provided in sections 1471 through 1474, including the final regulations thereunder. See § 1.1471–1(b) for a compre

hensive list of chapter 4 terms and definitions.

(B) Reporting Model 2 FFIs. A reporting Model 2 FFI must use the definitions set forth in the applicable Model 2 IGA with respect to the accounts that it maintains in the Model 2 IGA jurisdiction, unless the Model 2 IGA jurisdiction permits the use of a definition provided in this agreement or §1.1471–1(b) in lieu of a definition set forth in the applicable Model 2 IGA, and such application does not frustrate the purposes of the Model 2 IGA. .02 Account/Financial account. “Account” or “financial account” means a financial account described in §1.1471– 5(b). .03 Account holder. “ Account holder” means the person who holds an account, as determined under §1.1471–5(a)(3). .04 Account maintained by a participat- ing FFI. “Account maintained by a participating FFI” means an account that a participating FFI is treated as maintaining under §1.1471–5(b)(5). .05 Active NFFE. In the case of a reporting Model 2 FFI, “active NFFE” means an active NFFE as defined in the applicable Model 2 IGA. .06 Backup withholding. “Backup withholding” means the withholding required under section 3406. .07 Branch. “Branch” means a unit, business, or office of an FFI that is treated as a branch under the regulatory regime of a jurisdiction or that is otherwise regulated under the laws of a jurisdiction as separate from other offices, units, or branches of the FFI, and includes a disregarded entity of an FFI. The term “branch” also means a unit, business, or office of an FFI that is located in a jurisdiction in which it is a resident, and a unit, business, or office in the jurisdiction in which it is created or organized. All units, businesses, and offices of a participating FFI in a single jurisdiction must be treated as a single branch. .08 Branch that maintains the account. A branch maintains an account if the rights and obligations of the participating FFI and the account holder with regard to such account (including any assets held in the account) are governed by the laws of the jurisdiction in which the branch is

located. See §1.1471–5(b)(5) for when an FFI is treated as maintaining an account. .09 Certified deemed-compliant FFI. “Certified deemed-compliant FFI” means an FFI described in §1.1471–5(f)(2) and includes a nonreporting FFI under a Model 1 IGA and a nonreporting FFI treated as a certified deemed-compliant FFI under a Model 2 IGA. .10 Chapter 4 reportable amount. “Chapter 4 reportable amount” means an amount described in §1.1474–1(d)(2)(i). .11 Chapter 4 status. “Chapter 4 status” means the status of a person as a U.S. person, a specified U.S. person, an individual that is a foreign person, a participating FFI, a certified or registered deemed-compliant FFI, a restricted distributor, an exempt beneficial owner, a nonparticipating FFI, a territory financial institution, an excepted NFFE (or, in the case of a reporting Model 2 FFI, an active NFFE), a direct reporting NFFE, a sponsored direct reporting NFFE, or a passive NFFE. .12 Compliance FI. “Compliance FI” means a financial institution described in §1.1471–4(f)(2)(ii)(A). .13 Custodial institution. “Custodial institution” means an entity described in §1.1471–5(e)(1)(ii). .14 Deemed-compliant FFI. “Deemedcompliant FFI” means an FFI that is treated, pursuant to section 1471(b)(2) and §1.1471–5(f), as meeting the requirements of section 1471(b). .15 Depository institution. “Depository institution” means an entity described in §1.1471–5(e)(1)(i). .16 Effective date of the FFI agreement. The effective date of the FFI agreement with respect to an FFI or a branch of an FFI that is a participating FFI is the date on which the IRS issues a GIIN to the FFI or branch. For a participating FFI that receives a GIIN prior to June 30, 2014, the effective date of the FFI agreement is June 30, 2014. .17 Entity account. “Entity account” means an account held by one or more entities. .18 Excepted NFFE. “Excepted NFFE” means an NFFE that is described in §1.1472–1(c)(1). .19 Exempt beneficial owner. “Exempt beneficial owner” means any person described in §1.1471–6(b) through (g) and

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includes any person treated as an exempt beneficial owner under an applicable Model 1 or Model 2 IGA. .20 Exempt recipient. “Exempt recipient” means a person described in §1.6049–5(c)(1)(ii) (for interest, dividends, and royalties), a person described in §1.6045–2(b)(2)(i) (for broker proceeds), and a person described in §1.6041–3(q) (for rents, amounts paid on notional principal contracts, and other fixed or determinable income). .21 Financial institution (FI). “Financial institution” or “FI” means an entity described in §1.1471–5(e)(1) and includes a financial institution as defined in an applicable Model 1 or Model 2 IGA. .22 FFI group. “FFI group” means an expanded affiliated group (as defined in §1.1471–5(i)) that includes one or more participating FFIs or, in the case of a reporting Model 2 FFI, a group of related entities as defined in an applicable Model 2 IGA. .23 FFI member. “FFI member” means an FFI that is a member of an FFI group. .24 Foreign financial institution (FFI). “ Foreign financial institution” or “FFI” means an entity described in §1.1471– 5(d). .25 Foreign reportable amount. “ Foreign reportable amount” means a payment of FDAP income as defined in §1.1473– 1(a)(2)(i)(A) that would be a withholdable payment if paid by a U.S. person. .26 Form 945. “Form 945” means IRS Form 945, Annual Return of Withheld Federal Income Tax. .27 Form 1042. “Form 1042” means IRS Form 1042, Annual Withholding Tax Re- turn for U.S. Source Income of Foreign Persons . .28 Form 1042-S. “Form 1042-S” means IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding . .29 Form 1099. “Form 1099” means IRS Form 1099-B, Proceeds From Broker and Barter Exchange Transactions ; IRS Form 1099-DIV, Dividends and Distributions ; IRS Form 1099-INT, Interest Income ; IRS Form 1099-MISC, Miscellaneous Income ; IRS Form 1099-OID, Original Issue Dis- count, and any other form in the IRS Form 1099 series appropriate to the type of payment required to be reported. .30 Form 8957. “Form 8957” means IRS Form 8957, Foreign Account Tax Compli-

ance Act (FATCA) Registration, and includes the online version of the form on the FATCA registration website available at http://www.irs.gov/fatca. .31 Form 8966. “Form 8966” means IRS Form 8966, FATCA Report, and includes the FATCA Report XML. .32 Individual account. “Individual account” means an account held by one or more individuals. .33 Intergovernmental Agreement (IGA). “Intergovernmental Agreement” or “IGA” means any applicable Model 1 or Model 2 IGA.

(A) Model 1 IGA. “ Model 1 IGA” means an agreement or arrangement between the United States or the Treasury Department and a foreign government or one or more agencies thereof to implement FATCA through reporting by financial institutions to such foreign government or agency thereof, followed by automatic exchange of the reported information with the IRS.

(B) Model 2 IGA. “Model 2 IGA” means an agreement or arrangement between the United States or the Treasury Department and a foreign government or one or more agencies thereof to facilitate the implementation of FATCA through reporting by financial institutions directly to the IRS in accordance with the terms of this agreement, supplemented by the exchange of information between such foreign government or agency thereof and the IRS. .34 Lead FI. “Lead FI” means an FFI or U.S. financial institution that is designated by members of the FFI group to initiate and manage FATCA registration via the FATCA registration website for such FFI members of the FFI group and that agrees to the responsibilities described in section 11.02 of this agreement. .35 Limited branch. “Limited branch” means a branch of a participating FFI described in §1.1471–4(e)(2)(iii) and section 7.04 of this agreement. With respect to a reporting Model 2 FFI, a limited branch is another branch of the reporting Model 2 FFI that operates in a jurisdiction that prevents such branch from fulfilling the requirements of a participating FFI or deemed-compliant FFI, or that cannot fulfill the requirements of a participating FFI or deemed-compliant FFI due to the expiration of the transitional rule for limited

branches under §1.1471–4(e)(2)(v), and for which the reporting Model 2 FFI meets the terms of the applicable Model 2 IGA with respect to the branch. .36 Limited FFI. “Limited FFI” means an FFI described in §1.1471–4(e)(3)(ii). With respect to a reporting Model 2 FFI, a limited FFI is a related entity that operates in a jurisdiction that prevents the entity from fulfilling the requirements of a participating FFI or deemed-compliant FFI or that cannot fulfill the requirements of a participating FFI or deemed-compliant FFI due to the expiration of the transitional rule for limited FFIs under §1.1471–4(e)(3)(iv), and for which the reporting Model 2 FFI meets the requirements of the applicable Model 2 IGA with respect to the entity. .37 New account. “New account” means an account other than a preexisting account. .38 Non-consenting U.S. account. For purposes of a reporting Model 2 FFI, a “non-consenting U.S. account” has the meaning that such term has under an applicable Model 2 IGA. .39 Non-exempt recipient. “Non-exempt recipient” means a person that is not an exempt recipient. .40 Non-financial foreign entity (NFFE). “Non-financial foreign entity” or “NFFE” means a foreign entity that is not a financial institution (including a territory NFFE as defined in §1.1471–1(b)(123)). The term also means a foreign entity treated as an NFFE under an applicable Model 1 or 2 IGA. .41 Nonparticipating FFI. “Nonparticipating FFI” means an FFI other than a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner. . 42 Nonqualified intermediary (NQI). “Nonqualified intermediary” or an “NQI” means an entity described in §1.1441– 1(c)(14). .43 Non-U.S. account. “Non-U.S. account” means an account that is not a U.S. account and that does not have an account holder that is a nonparticipating FFI or recalcitrant account holder. .44 Non-U.S. payor. “Non-U.S. payor” means a payor other than a U.S. payor. .45 Nonwithholding foreign partner- ship (NWP). “Nonwithholding foreign partnership” or “NWP” means a foreign

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partnership other than a withholding foreign partnership. .46 Nonwithholding foreign trust (NWT) . “Nonwithholding foreign trust” or “NWT” means a foreign trust other than a withholding foreign trust. .47 Obligation. “Obligation” means an account, instrument, contract, debt, or equity interest. .48 Offshore obligation. “Offshore obligation” means an obligation described in §1.1471–1(b)(82). .49 Owner-documented FFI. “Ownerdocumented FFI” means an FFI described in §1.1471–5(f)(3). .50 Participating FFI. “Participating FFI” means an FFI, or branch of an FFI, that has registered with the IRS to comply with the terms of, and to enter into, this agreement with the IRS, and to obtain a GIIN. See also the definition of reporting Model 2 FFI. .51 Passive NFFE. “Passive NFFE” means an NFFE other than an excepted NFFE (or, in the case of a reporting Model 2 FFI, an active NFFE), a qualified intermediary, a withholding foreign partnership, a withholding foreign trust, or an exempt beneficial owner. .52 Payee. “Payee” means a person described in §1.1471–3(a). .53 Preexisting account. “Preexisting account” means any account maintained by the participating FFI that is outstanding on or before the effective date of the FFI agreement and includes an account described in §1.1471–1(b)(98)(ii). .54 Recalcitrant account holder. “Recalcitrant account holder” means an account holder described in §1.1471–5(g). .55 Registered deemed-compliant FFI. “Registered deemed-compliant FFI” means an FFI described in §1.1471– 5(f)(1), and includes a reporting Model 1 FFI, a QI branch of a U.S. financial institution that is a reporting Model 1 FFI, and a nonreporting FFI treated as a registered deemed-compliant FFI under a Model 2 IGA. .56 Reporting Model 1 FFI. “Reporting Model 1 FFI” means an FFI or branch of an FFI that is treated as a reporting financial institution under an applicable Model 1 IGA and that has registered with the IRS to obtain a GIIN. .57 Reporting Model 2 FFI. “Reporting Model 2 FFI” means an FFI or branch of

an FFI treated as a reporting financial institution under an applicable Model 2 IGA and that has registered with the IRS to comply with the terms of this agreement, as modified by an applicable Model 2 IGA, and to obtain a GIIN. .58 Reportable payment. “Reportable payment” means a payment of interest or dividends (as defined in section 3406(b)(2)) and other reportable payments (as defined in section 3406(b)(3)). .59 Responsible officer. “Responsible officer” means a person described in §1.1471–1(b)(108). .60 Specified insurance company. “Specified insurance company” means an insurance company described in §1.1471– 5(e)(1)(iv). .61 Sponsoring entity. “Sponsoring entity” means an entity that has registered with the IRS and agrees to perform the obligations of one or more sponsored entities pursuant to §1.1471–5(f) or §1.1472–1 and includes a sponsoring entity described in an applicable Model 1 or 2 IGA. .62 Territory FI. “Territory FI” means a financial institution that is incorporated or organized under the laws of any U.S. territory, excluding a territory entity that is an investment entity but is not a depository institution, custodial institution, or specified insurance company. .63 U.S. account. “U.S. account” means an account described in §1.1471–5(a). .64 U.S. branch treated as a U.S. per- son. “U.S. branch treated as a U.S. person” means a U.S. branch of a participating FFI, reporting Model 1 or 2 FFI, or registered deemed-compliant FFI that is treated as a U.S. person under §1.1441– 1(b)(2)(iv)(A). .65 U.S. source FDAP income. “U.S. source FDAP income” means income described in §1.1473–1(a)(2). .66 U.S. payor. “U.S. payor” means a U.S. payor or U.S. middleman as defined in §1.6049–5(c)(5). .67 Withholding agent. “Withholding agent” means a person described in §1.1473–1(d). .68 Withholdable payment. “Withholdable payment” means a payment described in §1.1473–1(a).