SEC. 591. DEDUCTION FOR
DIVIDENDS PAID ON DEPOSITS.
591(a) IN GENERAL. --
In the case of mutual savings banks, cooperative banks, domestic
building and loan associations, and other savings institutions
chartered and supervised as savings and loan or similar associations
under Federal or State law, there shall be allowed as deductions
in computing taxable income amounts paid to, or credited to
the accounts of, depositors or holders of accounts as dividends
or interest on their deposits or withdrawable accounts, if such
amounts paid or credited are withdrawable on demand subject
only to customary notice of intention to withdraw.
591(b) MUTUAL SAVINGS BANK TO INCLUDE CERTAIN BANKS
WITH CAPITAL STOCK. --
For purposes of this part, the term "mutual savings bank"
includes any bank --
591(b)(1) which has capital
stock represented by shares, and
591(b)(2) which is subject
to, and operates under, Federal or State laws relating to mutual
savings bank.
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