in such estate. (2) Definitions For purposes of this subsection, the terms covered bond program , estate , and residual interest shall each have the same respective meanings as when used for purposes of subtitle D of title III of the Protecting American Taxpayers and Homeowners Act of 2018. . (3) Excise tax on estates created under covered bond programs by reason of default (A) In general Chapter 36 of such Code is amended by inserting after subchapter B the following new subchapter: C Tax on certain estates created under covered bond programs Sec. 4475. Tax on estates created under covered bond programs by reason of default. 4475. Tax on estates created under covered bond programs by reason of default (a) Imposition of tax A tax is hereby imposed on the creation of an estate by operation of section 343(b)(1) of the Protecting American Taxpayers and Homeowners Act of 2018. (b) Amount of tax The tax imposed under subsection (a) with respect to the creation of any estate shall be equal to 1 percent of the principal amount of the covered bonds secured by the cover pool with respect to such estate determined as of the close of the day before the creation of such estate. (c) By whom paid The tax imposed under subsection (a) shall be paid by the issuer of the covered bonds with respect to the covered bond program with respect to which the estate referred to in subsection (a) is created. (d) No effect on cover pool The tax imposed under subsection (a) shall not reduce the assets of the cover pool and no liability for such tax shall attach to the estate or to the assets of the cover pool. (e) Refund in case of bankruptcy, etc If an issuer liable for the tax imposed under subsection (a) enters conservatorship, receivership, liquidation, or bankruptcy during the 5-year period beginning on the date of the creation of the estate referred to in subsection (a), such liability shall be extinguished and any such tax paid shall refunded to the issuer immediately upon such event. (f) Definitions For purposes of this section, the