PARRIS N. GLENDENING, Governor                                 Ch. 127

REGULAR PLACE OF BUSINESS OF THE FINANCIAL INSTITUTION, THE REGULAR
PLACE OF BUSINESS, IF ANY, WHERE THE PASSIVE SOLICITATION OCCURRED IS
DETERMINED BY THE FACTS IN EACH CASE.

2. "INVESTIGATION" IS THE PROCEDURE WHEREBY

EMPLOYEES OF THE FINANCIAL INSTITUTION DETERMINE THE

CREDIT WORTHINESS OF THE CUSTOMER AS WELL AS THE DEGREE OF RISK
INVOLVED IN MAKING A PARTICULAR AGREEMENT. SUCH ACTIVITY IS LOCATED AT
THE REGULAR PLACE OF BUSINESS WHICH THE FINANCIAL INSTITUTION'S
EMPLOYEES ARE REGULARLY CONNECTED WITH OR WORKING OUT OF,
REGARDLESS OF WHERE THE SERVICES OF SUCH EMPLOYEES WERE ACTUALLY
PERFORMED.

3. "NEGOTIATION" IS THE PROCEDURE WHEREBY

EMPLOYEES OF THE FINANCIAL INSTITUTION AND ITS CUSTOMER DETERMINE THE
TERMS OF THE AGREEMENT SUCH AS THE AMOUNT, DURATION, INTEREST RATE,
FREQUENCY OF REPAYMENT, CURRENCY DENOMINATION AND SECURITY
REQUIRED. SUCH ACTIVITY IS LOCATED AT THE REGULAR PLACE OF BUSINESS
WHICH THE FINANCIAL INSTITUTION'S EMPLOYEES ARE REGULARLY CONNECTED
WITH OR WORKING OUT OF, REGARDLESS OF WHERE THE SERVICES OF SUCH
EMPLOYEES WERE ACTUALLY PERFORMED.

4. "APPROVAL" IS THE PROCEDURE WHEREBY EMPLOYEES
OR THE BOARD OF DIRECTORS OF THE FINANCIAL INSTITUTION MAKE THE FINAL
DETERMINATION WHETHER TO ENTER INTO THE AGREEMENT. SUCH ACTIVITY IS
LOCATED AT THE REGULAR PLACE OF BUSINESS WHICH THE FINANCIAL
INSTITUTION'S EMPLOYEES ARE REGULARLY CONNECTED WITH OR WORKING OUT
OF, REGARDLESS OF WHERE THE SERVICES OF SUCH EMPLOYEES WERE ACTUALLY
PERFORMED. IF THE BOARD OF DIRECTORS MAKES THE FINAL DETERMINATION,
SUCH ACTIVITY IS LOCATED AT THE COMMERCIAL DOMICILE OF THE FINANCIAL
INSTITUTION.

5. "ADMINISTRATION" IS THE PROCESS OF MANAGING THE
ACCOUNT. THIS PROCESS INCLUDES BOOKKEEPING, COLLECTING THE PAYMENTS,

CORRESPONDING WITH THE CUSTOMER, REPORTING TO MANAGEMENT

REGARDING THE STATUS OF THE AGREEMENT AND PROCEEDING AGAINST THE
BORROWER OR THE SECURITY INTEREST IF THE BORROWER IS IN DEFAULT. SUCH
ACTIVITY IS LOCATED AT THE REGULAR PLACE OF BUSINESS WHICH OVERSEES

THIS ACTIVITY.

(8) FOR PURPOSES OF DETERMINING THE LOCATION OF CREDIT CARD
RECEIVABLES, CREDIT CARD RECEIVABLES SHALL BE TREATED AS LOANS AND
SHALL BE SUBJECT TO THE PROVISIONS OF PARAGRAPH (7) OF THIS SUBSECTION.

(9) A LOAN THAT HAS BEEN PROPERLY ASSIGNED TO THIS STATE OR
ANOTHER STATE SHALL, ABSENT ANY CHANGE OF MATERIAL FACT, REMAIN
ASSIGNED TO THAT STATE FOR THE LENGTH OF THE ORIGINAL TERM OF THE LOAN.
THEREAFTER, THE LOAN MAY BE PROPERLY ASSIGNED TO A DIFFERENT STATE IF
THE LOAN HAS A PREPONDERANCE OF SUBSTANTIVE CONTACT TO A REGULAR
PLACE OF BUSINESS THERE.

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