HARRY HUGHES, Governor

973

2. Derives earnings from a foreign
exchange trading or hedging transaction that is related to such a
loan and

(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.

(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 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 year[.], AND SHALL FURTHER INCLUDE IN ITS
INCOME, § 280A(C)(6) OF THIS ARTICLE NOTWITHSTANDING, ANY PROFIT
REALIZED FROM THE SALE OR EXCHANGE OF BONDS ISSUED BY THIS STATE
OR ITS POLITICAL SUBDIVISIONS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1984.

Approved May 8, 1984.

CHAPTER 282

(Senate Bill 253)

AN ACT concerning

Franchise Tax - Rate

FOR the purpose of requiring the Director of the Department of
Assessments and Taxation to administer the franchise tax
beginning with a certain date; deleting obsolete language;
defining certain terms; clarifying language; providing for