104 STAT. 1388-544 PUBLIC LAW 101-508 —NOV. 5, 1990 "(i) IN GENERAL.—For purposes of this paragraph and paragraph (2), the term 'nonqualified nonrecourse financing' means any nonrecourse financing which is not qualified commercial financing. "(ii) QUALIFIED COMMERCIAL FINANCING. — For purposes of this paragraph, the term 'qualified commercial financing' means any financing with respect to any property if— "(I) such property is acquired by the taxpayer from a person who is not a related person, "(II) the amount of the nonrecourse financing with respect to such property does not exceed 80 percent of the credit base of such property, and "(III) such financing is borrowed from a qualified person or represents a loan from any Federal, State, or local government or instrumentality thereof, or is guaranteed by any Federal, State, or local government. Such term shall not include any convertible debt. "(iii) NONRECOURSE FINANCING.— For purposes of this subparagraph, the term 'nonrecourse financing* includes— "(I) any amount with respect to which the taxpayer is protected against loss through guarantees, stop-loss agreements, or other similar arrangements, and "(II) except to the extent provided in regulations, any amount borrowed from a person who has an interest (other than as a creditor) in the activity in which the property is used or from a related person to a person (other than the taxpayer) having such an interest. In the case of amounts borrowed by a corporation from a shareholder, subclause (II) shall not apply to an interest as a share-holder. "(iv) QUALIFIED PERSON.—For purposes of this paragraph, the term 'qualified person* means any person which is actively and regularly engaged in the business of lending money and which is not— "(I) a related person with respect to the taxpayer, "(II) a person from which the taxpayer acquired the property (or a related person to such person), or "(III) a person who receives a fee with respect to the taxpayer's investment in the property (or a related person to such person). "(v) RELATED PERSON.—For purposes of this subparagraph, the term 'related person' has the meaning given such term by section 465(b)(3)(C). Except as otherwise provided in regulations prescribed by the Secretary, the determination of whether a person is a related person shall be made as of the close of the taxable year in which the property is placed in service. " (E) APPLICATION TO PARTNERSHIPS AND S CORPORATIONS. — For purposes of this paragraph and paragraph (2)—
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