Qualified Replacement Mortgage Law and Legal Definition

According to 26 USCS § 860G [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes and Surtaxes; Subchapter M. Regulated Investment Companies and Real Estate Investment Trusts; Part IV. Real Estate Mortgage Investment Conduits], qualified replacement mortgage means “any obligation--

(A) which would be a qualified mortgage if transferred on the startup day in exchange for regular or residual interests in the REMIC, and

(B) which is received for--

(i) another obligation within the 3-month period beginning on the startup day, or

(ii) a defective obligation within the 2-year period beginning on the startup day.”