HARRY HUGHES, Governor                               3475

(VI)  A FOREIGN CORPORATION OR PARTNERSHIP
THAT HAS ESTABLISHED AN OFFICE WITHIN AN APPROVED FOREIGN
TRADE ZONE FOR ACTIVITIES TO BE CONDUCTED WITHIN THE
APPROVED FOREIGN TRADE ZONE.

(VII)  AS USED IN THIS PARAGRAPH, THE TERMS
"FOREIGN" AND "DOMESTIC" HAVE THE SAME MEANINGS AS IN THE
INTERNAL REVENUE CODE.

(4)  "APPROVED FOREIGN TRADE ZONE" MEANS AN AREA
DESIGNATED AS IN ACCORDANCE WITH SECTIONS 466 THROUGH 469 OF
ARTICLE 23 OF THIS CODE AND THE FOREIGN-TRADE ZONES ACT (19
USC 81A, ET SEQ.).

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

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

(II) 2. DERIVES EARNINGS FROM A FOREIGN
EXCHANGE TRADING OR HEDGING TRANSACTION THAT IS RELATED TO
SUCH A LOAN.; AND

(III) IS LOCATED WITHIN 1 MILE OF THE

FOREIGN TRADE ZONE IN AREA THAT HAS BEEN DESIGNATED FOR USES
SET FORTH IN SUBPARAGRAPHS I AND II UPON RECOMMENDATION OF
THE CHIEF EXECUTIVE OFFICER AND APPROVAL BY RESOLUTION OF
THE LEGISLATIVE BODY OF THE COUNTY WHEREIN THE FINANCIAL
INSTITUTION IS LOCATED.

(II) 1. MEETS THE REQUIREMENTS TO BE AN
INTERNATIONAL BANKING FACILITY AS SET FORTH IN THE LAWS OF
THE UNITED STATES OR REGULATIONS OF THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM; AND

2. IS LOCATED WITHIN A COUNTY WHERE
THERE IS AN APPROVED FOREIGN TRADE ZONE. FOR PURPOSES OF
THIS SECTION "COUNTY" SHALL INCLUDE BALTIMORE CITY. THIS
SUBPARAGRAPH DOES NOT APPLY TO A FOREIGN TRADE ZONE WHERE
THE APPLICANT FOR SUCH A ZONE IS A PUBLIC CORPORATION OTHER
THAN A COUNTY, AS DEFINED BY ARTICLE 23, § 466 OF THIS CODE.

(6)  "NET EARNINGS" MEANS THE NET INCOME OF A
FINANCIAL INSTITUTION FOR ITS ANNUAL ACCOUNTING PERIOD
ENDING WITH OR WITHIN THE FISCAL YEAR OF THE STATE FOR WHICH
THE TAX IS IMPOSED UNDER THIS SECTION, DETERMINED UNDER §
280A(A) OF THIS ARTICLE AND ALLOCABLE TO THIS STATE UNDER
THE PROVISIONS OF SUBSECTION (E) OF THIS SECTION AND
ADJUSTED UNDER SUBSECTION (I) 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