698 Acta Apostolicae Sedis - Commentarium Officiale

3. An obligation of a Financial Institution servicing a loan secured by real

property to set aside a portion of a payment solely to facilitate the pay-

ment of taxes or insurance related to the real property at a later time.

4. An obligation of a Financial Institution solely to facilitate the payment

of taxes at a later time.

E. Partner Jurisdiction Accounts. An account maintained in the Vatican City

State and excluded from the definition of Financial Account under an agree-

ment between the United States and another Partner Jurisdiction to facili-

tate the implementation of FATCA, provided that such account is subject to

the same requirements and oversight under the laws of such other Partner

Jurisdiction as if such account were established in that Partner Jurisdiction

and maintained by a Partner Jurisdiction Financial Institution in that Part-

ner Jurisdiction.

VI. Definitions. The following additional definitions shall apply to the descrip-

tions above:

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Finan-

cial Institution with respect to which a non-U.S. government or agency

thereof agrees to obtain and exchange information pursuant to a Model 1

IGA, other than a Financial Institution treated as a Nonparticipating Fi-

nancial Institution under the Model 1 IGA. For purposes of this definition,

the term Model 1 IGA means an arrangement between the United States

or the Treasury Department and a non-U.S. government or one or more

agencies thereof to implement FATCA through reporting by Financial In-

stitutions to such non-U.S. government or agency thereof, followed by au-

tomatic exchange of such reported information with the IRS.

B. Participating FFI. The term Participating FFI means a Financial Institu-

tion that has agreed to comply with the requirements of an FFI Agree-

ment, including a Financial Institution described in a Model 2 IGA that has

agreed to comply with the requirements of an FFI Agreement. The term

Participating FFI also includes a qualified intermediary branch of a Re-

porting U.S. Financial Institution, unless such branch is a Reporting Model

1 FFI. For purposes of this definition, the term FFI Agreement means an

agreement that sets forth the requirements for a Financial Institution to be

treated as complying with the requirements of section 1471(b) of the U.S.

Internal Revenue Code. In addition, for purposes of this definition, the