Ch. 127                                        1995 LAWS OF MARYLAND

(D) IN COMPUTING TAXABLE NET EARNINGS, A FINANCIAL INSTITUTION
THAT IS A COMMERCIAL BANK, A SAVINGS BANK, A TRUST COMPANY, OR A
COMPANY THAT SUBSTANTIALLY COMPETES WITH NATIONAL BANKS IN THE STATE
SHALL SUBTRACT FROM ITS NET EARNINGS COMPUTED UNDER SUBSECTION (A) OF
THIS SECTION:

(1) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 1995 BUT
BEFORE JANUARY 1, 1997, 50% OF THE AMOUNT REQUIRED TO BE ADDED UNDER
SUBSECTION (B)(1), (3), (4), AND (5) OF THIS SECTION; AND

(2) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 1996 BUT
BEFORE JANUARY 1, 1998, 75% OF THE AMOUNT REQUIRED TO BE ADDED UNDER
SUBSECTION (B)(1), (3), (4), AND (5) OF THIS SECTION.

8-206.

[(a) In computing taxable not earnings, a financial institution with not earnings
derived outside the State shall allocate its net earnings, in the manner that the
Department requires, based on the gross volume of the transactions of the financial
institution inside and outside the State.]

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "BILLING ADDRESS" MEANS THE LOCATION INDICATED IN THE
BOOKS AND RECORDS OF THE FINANCIAL INSTITUTION ON THE FIRST DAY OF THE
TAXABLE YEAR (OR ON SUCH LATER DATE IN THE TAXABLE YEAR WHEN THE
CUSTOMER RELATIONSHIP BEGAN) AS THE ADDRESS WHERE ANY NOTICE,
STATEMENT AND/OR BILL RELATING TO A CUSTOMER'S ACCOUNT IS MAILED.

(3)      "BORROWER OR CREDIT CARD HOLDER LOCATED IN THIS STATE"
MEANS;

(I) A BORROWER, OTHER THAN A CREDIT CARD HOLDER, THAT IS
ENGAGED IN A TRADE OR BUSINESS WHICH MAINTAINS ITS COMMERCIAL DOMICILE
IN THIS STATE; OR

(II) A BORROWER THAT IS NOT ENGAGED IN A TRADE OR
BUSINESS OR A CREDIT CARD HOLDER WHOSE BILLING ADDRESS IS IN THIS STATE.

(4)      "COMMERCIAL DOMICILE" MEANS:

(I) THE HEADQUARTERS OF THE TRADE OR BUSINESS, THAT IS,
THE PLACE FROM WHICH THE TRADE OR BUSINESS IS PRINCIPALLY MANAGED OR;
DIRECTED; OR

(II) IF A FINANCIAL INSTITUTION IS ORGANIZED UNDER THE LAWS.
OF A FOREIGN COUNTRY, OR OF THE COMMONWEALTH OF PUERTO RICO, OR ANY
TERRITORY OR POSSESSION OF THE UNITED STATES, SUCH FINANCIAL
INSTITUTION'S COMMERCIAL DOMICILE SHALL BE DEEMED FOR THE PURPOSES OF
THIS ACT TO BE THE STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA
FROM WHICH SUCH FINANCIAL INSTITUTION'S TRADE OR BUSINESS IN THE UNITED

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