It works, I just edited your original post to show the preformatted text, which needed an extra line between the two sections.
Should be:
My example code:
line 1
<line 2>
line 3
Instead of:
My example code:
line 1
<line 2>
line 3
<> tags are reserved, like <strike>. So the behaviour is correct, just an extra return is needed for it to display. 