Ch. 127

1995 LAWS OF MARYLAND

                                  2. SUCH ASSIGNMENT. ON ITS RECORDS IS BASED UPON

SUBSTANTIVE CONTACTS OF THE LOAN TO SUCH REGULAR PLACE OF BUSINESS;

3. THE FINANCIAL INSTITUTION USES SAID RECORDS
REFLECTING ASSIGNMENT OF LOANS FOR THE FILING OF ALL STATE AND LOCAL
TAX RETURNS FOR WHICH AN ASSIGNMENT OF LOANS TO A REGULAR PLACE OF
BUSINESS IS REQUIRED.

(III) THE PRESUMPTION OF PROPER ASSIGNMENT OF A LOAM
PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH MAY BE REBUTTED UPON A
SHOWING BY THE DEPARTMENT, SUPPORTED BY A PREPONDERANCE OF THE
EVIDENCE, THAT THE PREPONDERANCE OF SUBSTANTIVE CONTACTS REGARDING
SUCH LOAN DID NOT OCCUR AT THE REGULAR PLACE OF BUSINESS TO WHICH IT
WAS ASSIGNED ON THE FINANCIAL INSTITUTION'S RECORDS. WHEN SUCH
PRESUMPTION HAS BEEN REBUTTED, THE LOAN SHALL THEN BE LOCATED WITHIN
THIS STATE IF;

1. THE FINANCIAL INSTITUTION HAD A REGULAR PLACE OF
BUSINESS WITHIN THIS STATE AT THE TIME THE LOAN WAS MADE; AND

2. THE FINANCIAL INSTITUTION FAILS TO SHOW, BY A
PREPONDERANCE OF THE EVIDENCE, THAT THE PREPONDERANCE OF SUBSTANTIVE
CONTACTS REGARDING SUCH LOAN DID NOT OCCUR WITHIN THIS STATE.

(IV) IN THE CASE OF A LOAN WHICH IS ASSIGNED BY THE
FINANCIAL INSTITUTION TO A PLACE IN ANOTHER STATE MUCH IS NOT A REGULAR
PLACE OF BUSINESS, IT SHALL BE PRESUMED, SUBJECT TO REBUTTAL BY THE
FINANCIAL INSTITUTION ON A SHOWING SUPPORTED BY THE PREPONDERANCE OF
EVIDENCE, THAT THE PREPONDERANCE OF SUBSTANTIVE CONTACTS REGARDING
THE LOAN OCCURRED WITHIN THIS STATE IF, AT THE TIME THE LOAN WAS MADE
THE FINANCIAL INSTITUTION'S COMMERCIAL DOMICILE WAS WITHIN THIS STATE.

(V) TO DETERMINE THE STATE IN WHICH THE PREPONDERANCE
OF SUBSTANTIVE CONTACTS RELATING TO A LOAN HAVE OCCURRED, THE FACTS
AND CIRCUMSTANCES REGARDING THE LOAN AT ISSUE SHALL BE REVIEWED ON A
CASE BY CASE BASIS AND CONSIDERATION SHALL BE GIVEN TO SUCH ACTIVITIES
AS THE SOLICITATION, INVESTIGATION, NEGOTIATION, APPROVAL AND
ADMINISTRATION OF THE LOAN. THE TERMS "SOLICITATION", "INVESTIGATION".
"NEGOTIATION", "APPROVAL", AND "ADMINISTRATION" ARE DEFINED AS
FOLLOWS;

1. "SOLICITATION" IS EITHER ACTIVE OR PASSIVE. ACTIVE
SOLICITATION OCCURS WHEN AN EMPLOYEE OF THE FINANCIAL INSTITUTION
INITIATES THE CONTACT WITH THE CUSTOMER. SUCH ACTIVITY IS LOCATED AT THE
REGULAR PLACE OF BUSINESS WHICH THE FINANCIAL INSTITUTION'S EMPLOYEE IS
REGULARLY CONNECTED WITH OR WORKING OUT OF, REGARDLESS OF WHERE THE
SERVICES OF SUCH EMPLOYEE WERE ACTUALLY PERFORMED. PASSIVE
SOLICITATION OCCURS WHEN THE CUSTOMER INITIATES THE CONTACT WITH THE
FINANCIAL INSTITUTION. IF THE CUSTOMER'S INITIAL CONTACT WAS NOT AT A

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