Acta Francisci Pp. 687

Code, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution.

A. Governmental Entity. The Holy See or the government of the Vatican City State, any political subdivision of the Holy See or the Vatican City State, or any wholly owned agency or instrumentality of the Holy See or the Vatican City State or any one or more of the foregoing (each, a "HS/VCS Govern- mental Entity"). This category is comprised of the integral parts, controlled entities, and political subdivisions of the Holy See or the Vatican City State.

1. An integral part of the Holy See or the Vatican City State means any person, organization, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a governing authority of the Holy See or the Vatican City State. The net earnings of the governing authority must be credited to its own account or to other accounts of the Holy See or Vatican City State with no portion inuring to the benefit of any private person. An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity.

2. A controlled entity means an Entity that is separate in form from the Holy See or the Vatican City State or that otherwise constitutes a sepa- rate juridical entity, provided that:

a) The Entity is wholly owned and controlled by one or more HS/VCS Governmental Entities directly or through one or more controlled entities;

b) The Entity's net earnings are credited to its own account or to the accounts of one or more HS/VCS Governmental Entities, with no portion of its income inuring to the benefit of any private person; and

c) The Entity's assets vest in one or more HS/VCS Governmental Enti- ties upon dissolution.

3. Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental program, and the program activities are performed for the general public with respect to the com- mon welfare or relate to the administration of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business, such as a commer- cial banking business, that provides financial services to private persons.