In Matter of Xerox Corporation, DTA No. 822620 (N.Y.S. Div. of Tax. App., Oct. 7, 2010), a State ALJ held that Xerox’s receipts from financing transactions with government entities should be treated as income from investment capital rather than business capital, since the regulatory definition of “other securities” included in investment capital clearly encompassed “debt instruments issued by governmental entities.” 20 NYCRR 3-3.2(c)(2). The ALJ rejected the Division’s attempt to rely on language contained in a former version of the regulation, which would have required the securities to be of a type customarily sold in the open market. While the Division argued that the old regulation had never been explicitly or affirmatively “disavowed,” the ALJ noted that the former language was not contained in the amended regulation and could not be relied upon. In addition, the ALJ held that the Division could not apply to governmental debt instrument restrictions in the current regulations providing that corporate debt instruments do not qualify as investment capital if acquired by the taxpayer for services rendered or for the sale or rental of property.