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(III) "ELIGIBLE GROSS EARNINGS" MEANS THAT
AMOUNT DETERMINED BY THE GROSS EARNINGS DERIVED EITHER
DIRECTLY FROM OR INDIRECTLY BY MEANS OF ANY FOREIGN EXCHANGE
TRADING OR HEDGING TRANSACTION RELATED TO MAKING, ARRANGING
FOR, PLACING, OR SERVICING ANY LOAN TO ANY FOREIGN PERSON.
THE GROSS EARNINGS FROM THESE TRANSACTIONS ARE NOT INCLUDED,
UNLESS ESTHER SUBSTANTIALLY ALL THE PROCEEDS OF THE LOAN ARE
FOR USE EITHER OUTSIDE OF THE UNITED STATES OR ALL THE
PROCEEDS ARE FOR USE WITHIN AN APPROVED FOREIGN TRADE ZONE
IN THE CASE OF EITHER:
1. A FOREIGN PERSON THAT IS AN
INDIVIDUAL;
2. EITHER A FOREIGN BRANCH OF A
DOMESTIC CORPORATION (OTHER THAN A BANK), IN WHICH THE
DOMESTIC CORPORATION HAS AT LEAST 80 PERCENT OWNERSHIP OR
CONTROL; OR
3. AN INDIVIDUAL RESIDING IN THE
STATE OF MARYLAND OR THE UNITED STATES.
(IV) "ELIGIBLE NET EARNINGS" MEANS THAT
AMOUNT DETERMINED BY SUBTRACTING FROM THE ELIGIBLE GROSS
EARNINGS THE APPLICABLE EXPENSES.
(V) "INELIGIBLE FUNDING AMOUNT" MEANS THAT
AMOUNT DETERMINED BY MULTIPLYING THE ELIGIBLE NET EARNINGS
BY A FRACTION:
1. THE NUMERATOR OF WHICH IS THE
AVERAGE AGGREGATE AMOUNT FOR THE TAXABLE YEAR OF ALL
LIABILITIES, INCLUDING DEPOSITS AND OTHER SOURCES OF FUNDS
OF THE INTERNATIONAL BANKING FACILITY, WHICH WERE NOT OWED
TO OR RECEIVED FROM ANY FOREIGN PERSON; AND
2. THE DENOMINATOR OF WHICH IS THE
AVERAGE AGGREGATE AMOUNT FOR THE TAXABLE YEAR OF ALL
LIABILITIES, INCLUDING DEPOSITS AND OTHER SOURCES OF FUNDS
OF THE INTERNATIONAL BANKING FACILITY.
(VI) THE "FLOOR AMOUNT" MEANS THAT AMOUNT
DETERMINED BY SUBTRACTING FROM THE ELIGIBLE NET EARNINGS THE
INELIGIBLE NET EARNINGS AND THEN MULTIPLYING THE REMAINDER
BY A FRACTION WHICH CANNOT BE GREATER THAN ONE AND IS
DETERMINED AS FOLLOWS:
1. THE NUMERATOR IS THE REMAINDER OF
THE FOLLOWING:
A. THE ALLOWABLE PERCENTAGE OF THE
AVERAGE AGGREGATE AMOUNT OF THE TAXPAYER'S LOANS TO FOREIGN
PERSONS AND DEPOSITS WITH FOREIGN PERSONS WHICH ARE BANKS OR
FOREIGN BRANCHES OF BANKS (INCLUDING FOREIGN SUBSIDIARIES OR
FOREIGN BRANCHES OF THE TAXPAYER) WHICH ARE RECORDED IN THE
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