J. MILLARD TAWES, Governor                       189

(b)    For the purposes of this subtitle, (1) a savings bank is an
institution or corporation organized for receiving deposits of
money and paying interest thereon, other than banks having a
capital stock; (2) a building, saving and loan association is an
association as defined in Section 161B of Article 23 of this Code
(1964 Supplement, as amended from time to time); (3) net earnings
is an amount equal to the net income of a taxpayer if computed for
the particular savings bank or building, saving and loan association
under the provisions of the subtitle "Income Tax" in Article 81 of
this Code (1957 Edition), as amended from time to time.

(c)    The tax imposed shall be computed at the rate of three-
quarters of one percentum (¾ of 1%) of that portion of the annual
net earnings of the savings bank or of the building, saving and
loan association, which exceeds the sum of one hundred thousand
dollars ($100,000.). The computation shall be made in particular
cases either on a calendar year or on a fiscal year basis, whichever
the bank or association is using for its regular accounting period.
The computation shall be based upon all operations and branches
of the bank or association and upon the annual net earnings of the
bank or association as an entirety. The computation shall be made
before the calculation or allowance of any dividends OR INTEREST
PAID OR CREDITED ON SAVINGS ACCOUNTS AND INVEST-
MENT CERTIFICATES or other apportionment of profits; and the
computation shall be made before allowing for any reserves PRO-
VIDED HOWEVER, THAT WITH RESPECT TO FOREIGN
SAVINGS BANKS AND ASSOCIATIONS ADMITTED TO DO
BUSINESS IN THE STATE OF MARYLAND THE COMPUTA-
TION SHALL BE BASED ON THAT PART OF THE YEARLY
NET EARNINGS OF THE SAVINGS BANK OR ASSOCIATION
AS AN ENTIRETY WHICH BEARS THE SAME RATIO TO THE
TOTAL ANNUAL NET EARNINGS OF THE SAVINGS BANK
OR ASSOCIATION AS AN ENTIRETY AS THE TOTAL OF ALL
LOANS MADE BY THE SAVINGS BANK OR ASSOCIATION
ON THE SECURITY OF PROPERTY LOCATED IN MARYLAND
BEARS TO THE TOTAL OF ALL LOANS MADE BY THE SAV-
INGS BANK OR ASSOCIATION AS AN ENTIRETY, BOTH AS
SHOWN BY THE BOOKS OF THE SAVINGS BANK OR AS-
SOCIATION ON THE LAST DAY OF THE ACCOUNTING YEAR
OF THE SAVINGS BANK OR ASSOCIATION. PROVIDED
FURTHER, THAT IF BY REASON OF ANY LAW OF ANY
FOREIGN JURISDICTION A SAVINGS BANK OR ASSOCIA-
TION CHARTERED IN THIS STATE OR ADMITTED TO DO
BUSINESS IN THIS STATE AND DOING BUSINESS IN SUCH
OTHER JURISDICTION IS REQUIRED TO PAY A FRANCHISE
TAX TO SAID FOREIGN JURISDICTION BASED UPON ITS
SAVINGS ACCOUNTS OR FREE SHARES PURCHASED IN
THE STATE OF MARYLAND, OR IS REQUIRED TO PAY TO
SAID FOREIGN JURISDICTION A TAX ON ITS GROSS RE-
CEIPTS INCLUDING ITS GROSS RECEIPTS FROM BUSINESS
DONE IN THE STATE OF MARYLAND, OR IS REQUIRED TO
PAY TO SAID FOREIGN JURISDICTION A TAX ON ITS IN-
COME INCLUDING INCOME DERIVED FROM BUSINESS
DONE IN THE STATE OF MARYLAND, THEN THE TAX
IMPOSED BY THIS SECTION SHALL BE REDUCED TO THE
EXTENT OF ANY SUCH FRANCHISE TAX OR GROSS RE-
CEIPTS TAX OR INCOME TAX SO PAID TO SAID FOREIGN