Acta Francisci Pp. 691

3. The Financial Institution does not have more than $50 million in assets

on its balance sheet, and the Financial Institution and any Related Enti-

ties, taken together, do not have more than $50 million in total assets on

their consolidated or combined balance sheets.

C. Qualified Credit Card Issuer. A HS/VCS Financial Institution satisfying the

following requirements:

1. The Financial Institution is a Financial Institution solely because it is an

issuer of credit cards that accepts deposits only when a customer makes

a payment in excess of a balance due with respect to the card and the

overpayment is not immediately returned to the customer; and

2. Beginning on or before the Determination Date, the Financial Institu-

tion implements policies and procedures to either prevent a customer

deposit in excess of $50,000, or to ensure that any customer deposit in

excess of $50,000, in each case applying the rules set forth in Annex I

for account aggregation and currency translation, is refunded to the cus-

tomer within 60 days. For this purpose, a customer deposit does not re-

fer to credit balances to the extent of disputed charges but does include

credit balances resulting from merchandise returns.

IV. Investment Entities that Qualify as Deemed-Compliant FFIs and Other Spe-

cial Rules. The Financial Institutions described in paragraphs A through E of this

section are Non-Reporting HS/VCS Financial Institutions that shall be treated as

deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue

Code. In addition, paragraph F of this section provides special rules applicable to

an Investment Entity.

A. Trustee-Documented Trust. A trust established under the laws of the Holy

See or the Vatican City State to the extent that the trustee of the trust is

a Reporting U.S. Financial Institution, Reporting Model 1 FFI, or Partici-

pating FFI and the trustee reports all information required to be reported

pursuant to the Agreement as would be required if the trust were a Report-

ing HS/VCS Financial Institution (including by following the applicable

registration requirements on the IRS FATCA registration website).

B. Sponsored Investment Entity and Controlled Foreign Corporation. A Fi-

nancial Institution described in subparagraph B(1) or B(2) of this section

having a sponsoring entity that complies with the requirements of subpar-

agraph B(3) of this section.