HARRY HUGHES, Governor                               3479

INTERNATIONAL BANKING INSTITUTION'S FINANCIAL ACCOUNT FOR
THE TAXABLE YEARS 1975, 1976, 1977 1978, 1979, AND 1980:
MINUS

B. THE AVERAGE AGGREGATE AMOUNT OF
THESE LOANS AND DEPOSITS (BUT NOT INCLUDING THE LOANS AND
DEPOSITS OF AN INTERNATIONAL BANKING FACILITY) FOR THE
INTERNATIONAL BANKING FACILITY'S TAXABLE YEAR. HOWEVER, THE
AMOUNT IN THIS CLAUSE MAY NOT EXCEED THE AMOUNT IN CLAUSE
(VI) 1.A.

2. THE ALLOWABLE PERCENTAGE IS 100
PERCENT FOR THE FIRST TAXABLE YEAR IN WHICH THE TAXPAYER
ESTABLISHES AN INTERNATIONAL BANKING FACILITY AND FOR THE
NEXT SUCCEEDING 4 TAXABLE YEARS; 80 PERCENT FOR THE FIFTH;
60 PERCENT FOR THE SIXTH; 40 PERCENT FOR THE SEVENTH; 20
PERCENT FOR THE EIGHTH YEAR; AND ZERO FOR THE NINTH AND
SUCCEEDING YEARS.

3. THE DENOMINATOR IS THE AVERAGE
AGGREGATE AMOUNT OF THE LOANS TO ANY FOREIGN PERSON AND
DEPOSITS WITH ANY FOREIGN PERSON THAT IS A BRANCH OR FOREIGN
BRANCH OF A BANK (INCLUDING ANY FOREIGN SUBSIDIARY OR
FOREIGN BRANCH OF THE TAXPAYER) THAT WERE RECORDED IN THE
FINANCIAL ACCOUNTS OF THE INTERNATIONAL BANKING FACILITY FOR
THE TAXABLE YEAR.

(2)  TO THE EXTENT NOT DEDUCTIBLE IN DETERMINING
FEDERAL TAXABLE INCOME, THE ADJUSTED ELIGIBLE NET EARNINGS
OF AN INTERNATIONAL BANKING FACILITY SHALL BE ALLOWED AS A
DEDUCTION FROM NET EARNINGS. IF THE ADJUSTED ELIGIBLE NET
EARNINGS OF AN INTERNATIONAL BANKING FACILITY IS A LOSS, THE
AMOUNT OF THE LOSS SHALL BE ADDED TO NET EARNINGS.

(3)  THE ADJUSTED ELIGIBLE NET EARNINGS IS
DETERMINED BY SUBTRACTING FROM ELIGIBLE NET EARNINGS THE
INELIGIBLE FUNDING AMOUNT AND THEN SUBTRACTING THE FLOOR
AMOUNT FROM THE REMAINDER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

May 19, 1981
The Honorable James Clark, Jr.
President of the Senate
State House
Annapolis, Maryland 21404

Dear Mr. President:

In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed Senate Bill 914.