significant power, right, or continuing interest

(2)The term “significant power, right, or continuing interest” includes, but is not limited to, the following rights with respect to the interest transferred: (A)A right to disapprove any assignment of such interest, or any part thereof. (B)A right to terminate at will. (C)A right to prescribe the standards of quality of products used or sold, or of services furnished, and of the equipment and facilities used to promote such products or services. (D)A right to require that the transferee sell or advertise only products or services of the transferor. (E)A right to require that the transferee purchase substantially all of his supplies and equipment from the transferor. (F)A right to payments contingent on the productivity, use, or disposition of the subject matter of the interest transferred, if such payments constitute a substantial element under the transfer agreement.

Source

26 USC § 1253(b)(2)


Scoping language

For purposes of this section
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