nonqualified preferred stock
(2) Nonqualified preferred stock For purposes of paragraph (1)— (A) In general The term “nonqualified preferred stock” means preferred stock if— (i) the holder of such stock has the right to require the issuer or a related person to redeem or purchase the stock, (ii) the issuer or a related person is required to redeem or purchase such stock, (iii) the issuer or a related person has the right to redeem or purchase the stock and, as of the issue date, it is more likely than not that such right will be exercised, or (iv) the dividend rate on such stock varies in whole or in part (directly or indirectly) with reference to interest rates, commodity prices, or other similar indices. (B) Limitations Clauses (i), (ii), and (iii) of subparagraph (A) shall apply only if the right or obligation referred to therein may be exercised within the 20-year period beginning on the issue date of such stock and such right or obligation is not subject to a contingency which, as of the issue date, makes remote the likelihood of the redemption or purchase. (C) Exceptions for certain rights or obligations (i) In general A right or obligation shall not be treated as described in clause (i), (ii), or (iii) of subparagraph (A) if— (I) it may be exercised only upon the death, disability, or mental incompetency of the holder, or (II) in the case of a right or obligation to redeem or purchase stock transferred in connection with the performance of services for the issuer or a related person (and which represents reasonable compensation), it may be exercised only upon the holder’s separation from service from the issuer or a related person. (ii) Exception Clause (i)(I) shall not apply if the stock relinquished in the exchange, or the stock acquired in the exchange is in— (I) a corporation if any class of stock in such corporation or a related party is readily tradable on an established securities market or otherwise, or (II) any other corporation if such exchange is part of a transaction or series of transactions in which such corporation is to become a corporation described in subclause (I).
26 USC § 351(g)(2)
None identified, default scope is assumed to be the parent (subpart A) of this section.