Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3
Character Range: 5041930–5042887

3                   the contract under which the *immediate annuity is payable:                                                                                                                        the contract does not permit the total of the commutation payments that may become payable before the end of the term of years certain to exceed the annuity's purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section.
                    (a) provides that the annuity is payable until the later of:
                    (i) the death of a person (or the death of the last of 2 or more persons to die); or
                    (ii) the end of a term of years certain; and
                    (b) permits one or more amounts (commutation payments) to become payable before the end of the term of years certain for the annuity's commutation (whether in whole or in part).