PARRIS N. GLENDENING, Governor                                 Ch. 127

(5) (I) THE AVERAGE VALUE OF REAL PROPERTY AND TANGIBLE
PERSONAL PROPERTY THAT THE FINANCIAL INSTITUTION HAS RENTED FROM
ANOTHER AND WHICH IS NOT TREATED AS PROPERTY OWNED BY THE FINANCIAL
INSTITUTION FOR FEDERAL INCOME TAX PURPOSES, SHALL BE DETERMINED
ANNUALLY BY MULTIPLYING THE GROSS RENTS PAYABLE DURING THE TAXABLE
YEAR BY EIGHT.

(II) WHERE THE USE OF THE GENERAL METHOD DESCRIBED IN
SUBPARAGRAPH (I) OF THIS PARAGRAPH RESULTS IN INACCURATE VALUATIONS OF
RENTED PROPERTY, ANY OTHER METHOD MUCH PROPERLY REFLECTS THE VALUE
MAY BE ADOPTED BY THE DEPARTMENT OR BY THE FINANCIAL INSTITUTION WHEN
APPROVED IN WRITING BY THE DEPARTMENT. ONCE APPROVED, SUCH OTHER
METHOD OF VALUATION MUST BE USED ON ALL SUBSEQUENT RETURNS UNLESS
THE FINANCIAL INSTITUTION RECEIVES PRIOR APPROVAL FROM THE DEPARTMENT
OR THE DEPARTMENT REQUIRES A DIFFERENT METHOD OF VALUATION.

(6) (I) EXCEPT AS DESCRIBED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, REAL PROPERTY AND TANGIBLE PERSONAL PROPERTY OWNED BY OR
RENTED TO THE FINANCIAL INSTITUTION IS CONSIDERED TO BE LOCATED WITHIN
THIS STATE IF IT IS PHYSICALLY LOCATED, SITUATED OR USED WITHIN THIS STATE.

(II) TRANSPORTATION PROPERTY IS INCLUDED IN THE

NUMERATOR OF THE PROPERTY FACTOR TO THE EXTENT THAT THE PROPERTY IS
USED IN THIS STATE. THE EXTENT AN AIRCRAFT WILL BE DEEMED TO BE USED IN
THIS STATE AND THE AMOUNT OF VALUE THAT IS TO BE INCLUDED IN THE
NUMERATOR OF THIS STATE'S PROPERTY FACTOR IS DETERMINED BY
MULTIPLYING THE AVERAGE VALUE OF THE AIRCRAFT BY A FRACTION, THE
NUMERATOR OF WHICH IS THE NUMBER OF LANDINGS OF THE AIRCRAFT IN THIS
STATE AND THE DENOMINATOR OF WHICH IS THE TOTAL NUMBER OF LANDINGS OF
THE AIRCRAFT EVERYWHERE. IF THE EXTENT OF THE USE OF ANY
TRANSPORTATION PROPERTY WITHIN THIS STATE CANNOT BE DETERMINED, THEN
THE PROPERTY WILL BE DEEMED TO BE USED WHOLLY WHERE THE PROPERTY HAS
ITS PRINCIPAL BASE OF OPERATIONS. A MOTOR VEHICLE WILL BE DEEMED TO BE
USED WHOLLY WHERE IT IS REGISTERED.

(7) (I) A LOAN IS CONSIDERED TO BE LOCATED WITHIN THIS STATE IF
IT IS PROPERLY ASSIGNED TO A REGULAR PLACE OF BUSINESS OF THE FINANCIAL
INSTITUTION WITHIN THIS STATE.

(II) A LOAN IS PROPERLY ASSIGNED TO THE REGULAR PLACE OF
BUSINESS WITH WHICH IT HAS A PREPONDERANCE OF SUBSTANTIVE CONTACTS. A
LOAN ASSIGNED BY THE FINANCIAL INSTITUTION TO A REGULAR PLACE OF
BUSINESS IN ANOTHER STATE SHALL BE PRESUMED TO HAVE BEEN PROPERLY
ASSIGNED IF:

1. THE FINANCIAL INSTITUTION HAS ASSIGNED, IN THE
REGULAR COURSE OF ITS BUSINESS, SUCH LOAN ON ITS RECORDS TO A REGULAR
PLACE OF BUSINESS CONSISTENT WITH FEDERAL OR STATE REGULATORY
REQUIREMENTS;

- 1721 -