Rev. Rul. 70-495

Revenue Ruling 65-92, C.B. 1965-1, 112, which provides a special method for computing a reasonable addition to a reserve for bad debts by banks, states that the term "banks" as used in that Revenue Ruling means banks or trust companies incorporated and doing business under the laws of the United States (including laws relating to the District of Columbia), of any State, or of any territory, a substantial part of the business of which consists of receiving deposits and making loans and discounts. Revenue Ruling 65-92 also states that such term does not include a mutual savings bank not having capital stock represented by shares, a domestic building and loan association as defined in section 7701(a)(19) of the Internal Revenue Code of 1954, or a cooperative bank as defined in section 7701(a)(32) of the Code.

Held, the term "banks" as used in Revenue Ruling 65-92 also does not include a Bank for Cooperatives within the meaning of section 2 of the Farm Credit Act of 1933, 12 U.S.C. section 1134.

Revenue Ruling 65-92, as supplemented by Revenue Ruling 66-26, C.B. 1966-1, 41, and Revenue Ruling 68-630, C.B. 1968-2, 84, and as modified by Revenue Ruling 68-524, C.B. 1968-2, 83, is hereby further supplemented.