specified notional principal contract
(3) Specified notional principal contract For purposes of this subsection, the term “specified notional principal contract” means— (A) any notional principal contract if— (i) in connection with entering into such contract, any long party to the contract transfers the underlying security to any short party to the contract, (ii) in connection with the termination of such contract, any short party to the contract transfers the underlying security to any long party to the contract, (iii) the underlying security is not readily tradable on an established securities market, (iv) in connection with entering into such contract, the underlying security is posted as collateral by any short party to the contract with any long party to the contract, or (v) such contract is identified by the Secretary as a specified notional principal contract, (B) in the case of payments made after the date which is 2 years after the date of the enactment of this subsection, any notional principal contract unless the Secretary determines that such contract is of a type which does not have the potential for tax avoidance.