Ch. 2

LAWS OF MARYLAND

1.  AN INDIVIDUAL WHO IS NOT A RESIDENT OF
THE UNITED STATES;

2.  A COMPANY, PARTNERSHIP, OR TRUST THAT
IS NOT ORGANIZED UNDER THE LAWS OF THE UNITED STATES OR OF A
STATE; AND

3.  A FOREIGN BRANCH OF A COMPANY
ORGANIZED UNDER THE LAWS OF THE UNITED STATES OR OF A STATE.

(II) "FOREIGN PERSON" INCLUDES:

1.  A FOREIGN GOVERNMENT OR ANY OF ITS
UNITS;

2.  AN INTERNATIONAL ORGANIZATION OR ANY
OF ITS AGENCIES;

3.  AN INTERNATIONAL BANKING FACILITY; OR

4.  A COMPANY OR PARTNERSHIP THAT IS NOT
ORGANIZED UNDER THE LAWS OF THE UNITED STATES OR OF A STATE AND
THAT HAS AN OFFICE AND ACTIVITIES WITHIN AN APPROVED FOREIGN
TRADE ZONE.

(3)  "INTERNATIONAL BANKING FACILITY" MEANS A
FINANCIAL INSTITUTION THAT:

(I)  QUALIFIES AS AN INTERNATIONAL BANKING
FACILITY UNDER THE LAWS OF THE UNITED STATES OR UNDER REGULATIONS
THAT THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ADOPTS;

(II)  IS LOCATED IN A COUNTY WHERE AN APPROVED
FOREIGN TRADE ZONE IS LOCATED; AND

(III) 1. MAKES, ARRANGES FOR, PLACES, OR
SERVICES A LOAN TO A FOREIGN PERSON FOR USE OUTSIDE THE UNITED
STATES OR IN AN APPROVED FOREIGN TRADE ZONE IN THE UNITED STATES;
OR

2. DERIVES EARNINGS FROM A FOREIGN
EXCHANGE TRADING OR HEDGING TRANSACTION THAT IS RELATED TO A LOAN
DESCRIBED IN ITEM (III)1. OF THIS PARAGRAPH.

(4)  "LIABILITY" MEANS THE TOTAL LIABILITIES SHOWN IN
THE RECORDS OF AN INTERNATIONAL BANKING FACILITY.

(B) QUALIFYING AMOUNT -- TREATMENT.

IN COMPUTING TAXABLE NET EARNINGS, AN INTERNATIONAL BANKING
FACILITY SHALL:

(1) DEDUCT THE QUALIFYING AMOUNT COMPUTED UNDER
SUBSECTION (C) OF THIS SECTION TO THE EXTENT THAT THE AMOUNT IS
NOT DEDUCTIBLE IN COMPUTING ITS FEDERAL TAXABLE INCOME; OR

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