3474

VETOES

1969, the tax shall be measured by only those net earnings
of the financial institution as are for the period after
December 31, 1967. "Net earnings" for purposes of this
section shall mean the net income of such financial
institution for its annual accounting period ending within
the fiscal year of the State for which the tax is imposed,
determined in accordance with the provisions of § 280A of
this article, allocable to this State under the provisions
of subsection (e) of this section; provided, however, that
the financial institution shall include in its income
interest upon obligations of the United States, of any state
including Maryland, of any county, municipal or public
corporation, authority, special district, or political
subdivision of any state including Maryland, and of the
respective instrumentalities thereof, and shall further
include in its income, § 280A(c)(4) of this article
notwithstanding, all other interest and dividends to the
extent included in its taxable income as defined in the laws
of the United States, as amended from time to time and in
effect for the corresponding taxable year.]

(A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(1)  "DIRECTOR" MEANS THE DIRECTOR OF THE
DEPARTMENT OF ASSESSMENTS AND TAXATION.

(2) (I) "FINANCIAL INSTITUTION" MEANS ALL
COMMERCIAL BANKS, SAFE DEPOSIT AND TRUST COMPANIES, AND
FINANCIAL CORPORATIONS AS DEFINED IN § 2(9) OF THIS ARTICLE.

(II) "FINANCIAL INSTITUTION" INCLUDES
INTERNATIONAL BANKING FACILITIES BUT DOES NOT INCLUDE
DOMESTIC OR FOREIGN FINANCE CORPORATIONS WHICH MAKE LOANS
EXCLUSIVELY TO FARMERS FOR AGRICULTURAL PURPOSES OR ANY
CORPORATION LICENSED UNDER THE SMALL BUSINESS INVESTMENT ACT
OF 1958, (15 U.S.C. 661 ET SEQ.).

(3)  "FOREIGN PERSON" MEANS:

(I)  AN INDIVIDUAL WHO IS NOT A RESIDENT OF
THE UNITED STATES;

(II)  A FOREIGN CORPORATION, A FOREIGN
PARTNERSHIP OR A FOREIGN TRUST, AS DEFINED IN THE TAX LAWS
OF THE UNITED STATES;

(III)  A FOREIGN BRANCH OF A DOMESTIC
CORPORATION (INCLUDING THE TAXPAYER);

(IV)  A FOREIGN GOVERNMENT OR AN
INTERNATIONAL ORGANIZATION OR AN AGENCY OF EITHER;

(V)  AN INTERNATIONAL BANKING FACILITY; OR