H.B. 1154                                                VETOES

PARAGRAPH (5) OF THIS SUBSECTION AND THE DENOMINATOR OF WHICH IS THE
TOTAL AMOUNT OF INTEREST AND FEES OR PENALTIES IN THE NATURE OF
INTEREST FROM LOANS NOT SECURED BY REAL PROPERTY:

(III) IN CIRCUMSTANCES IN WHICH THE BANK OR TRUST COMPANY
RECEIVES LOAN SERVICING FEES FOR SERVICING EITHER THE SECURED OR THE
UNSECURED LOANS OF ANOTHER, THE NUMERATOR OF THE RECEIPTS FACTOR
SHALL INCLUDE SUCH FEES IF THE BORROWER IS LOCATED IN THIS STATE.

(12) THE NUMERATOR OF THE RECEIPTS FACTOR INCLUDES RECEIPTS
FROM SERVICES NOT OTHERWISE APPORTIONED UNDER THIS SUBSECTION IF THE
SERVICE IS PERFORMED IN THIS STATE. IF THE SERVICE IS PERFORMED BOTH
WITHIN AND WITHOUT THIS STATE, THE NUMERATOR OF THE RECEIPTS FACTOR
INCLUDES RECEIPTS FROM SERVICES NOT OTHERWISE APPORTIONED UNDER THIS
SUBSECTION, IF A GREATER PROPORTION OF THE INCOME PRODUCING ACTIVITY IS
PERFORMED IN THIS STATE BASED ON COST OF PERFORMANCE.
(13) (I) INTEREST, DIVIDENDS, NET GAINS (BUT NOT LESS THAN ZERO)
AND OTHER INCOME FROM INVESTMENT ASSETS AND ACTIVITIES AND FROM
TRADING ASSETS AND ACTIVITIES SHALL BE INCLUDED IN THE RECEIPTS FACTOR:
INVESTMENT ASSETS AND ACTIVITIES AND TRADING ASSETS AND ACTIVITIES
INCLUDE BUT ARE NOT LIMITED TO: INVESTMENT SECURITIES; TRADING ACCOUNT
ASSETS; FEDERAL FUNDS; SECURITIES PURCHASED AND SOLD UNDER AGREEMENTS
TO RESELL OR REPURCHASE OPTIONS; FUTURE CONTRACTS; FORWARD
CONTRACTS; NOTIONAL PRINCIPAL CONTRACTS SUCH AS SWAPS; EQUITIES; AND
FOREIGN CURRENCY TRANSACTION. WITH RESPECT TO THE INVESTMENT AND
TRADING ASSETS AND ACTIVITIES DESCRIBED IN ITEMS 1 AND 2 OF THIS
SUBPARAGRAPH, THE RECEIPTS FACTOR SHALL INCLUDE THE AMOUNTS
DESCRIBED IN SUCH ITEMS.

1. THE RECEIPTS FACTOR SHALL INCLUDE THE AMOUNT BY
WHICH INTEREST FROM FEDERAL FUNDS SOLD AND SECURITIES PURCHASED
UNDER RESALE AGREEMENTS EXCEEDS INTEREST EXPENSE ON FEDERAL FUNDS
PURCHASED AND SECURITIES SOLD UNDER REPURCHASE AGREEMENTS.

2. THE RECEIPTS FACTOR SHALL INCLUDE THE AMOUNT BY
WHICH INTEREST, DIVIDENDS, GAINS AND OTHER INCOME FROM TRADING ASSETS
AND ACTIVITIES, INCLUDING BUT NOT LIMITED TO ASSETS AND ACTIVITIES IN THE
MATCHED BOOK, IN THE ARBITRAGE BOOK, AND FOREIGN CURRENCY
TRANSACTIONS, EXCEED AMOUNTS PAID IN LIEU OF INTEREST, AMOUNTS PAID IN
LIEU OF DIVIDENDS, AND LOSSES FROM SUCH ASSETS AND ACTIVITIES.

(II) THE NUMERATOR OF THE RECEIPTS FACTOR INCLUDES
INTEREST, DIVIDENDS, NET GAINS (BUT NOT LESS THAN ZERO) AND OTHER INCOME
FROM INVESTMENT ASSETS AND ACTIVITIES AND FROM TRADING ASSETS AND
ACTIVITIES DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH THAT ARE
ATTRIBUTABLE TO THIS STATE.

- 4328 -