H.B. 1154                                                VETOES

ALLOCATED RESERVE ESTABLISHED PURSUANT TO REGULATORY OR FINANCIAL
ACCOUNTING GUIDELINES WHICH IS TREATED AS CHARGED OFF FOR FEDERAL
INCOME TAX PURPOSES SHALL BE TREATED AS CHARGED OFF FOR PURPOSES OF
THIS SUBSECTION.

(III) CREDIT CARD RECEIVABLES ARE VALUED AT THEIR
OUTSTANDING PRINCIPAL BALANCE, WITHOUT REGARD TO ANY RESERVE FOR BAD
DEBTS. IF A CREDIT CARD RECEIVABLE IS CHARGED OFF IN WHOLE OR IN PART FOR
FEDERAL INCOME TAX PURPOSES, THE PORTION OF THE RECEIVABLE CHARGED
OFF IS NOT OUTSTANDING.                             

(4) THE AVERAGE VALUE OF PROPERTY OWNED BY THE BANK OR
TRUST COMPANY IS COMPUTED ON AN ANNUAL BASIS BY ADDING THE VALUE OF
THE PROPERTY ON THE FIRST DAY OF THE TAXABLE YEAR AND THE VALUE ON THE
LAST DAY OF THE TAXABLE YEAR AND DIVIDING THE SUM BY TWO. IF AVERAGING
ON THIS BASIS DOES NOT PROPERLY REFLECT AVERAGE VALUE, THE
COMPTROLLER MAY REQUIRE AVERAGING ON A MORE FREQUENT BASIS. THE
BANK OR TRUST COMPANY MAY ELECT TO AVERAGE ON A MORE FREQUENT BASIS.
WHEN AVERAGING ON A MORE FREQUENT BASIS IS REQUIRED BY THE
COMPTROLLER OR IS ELECTED BY THE BANK OR TRUST COMPANY, THE SAME
METHOD OF VALUATION MUST BE USED CONSISTENTLY BY THE BANK OR TRUST
COMPANY WITH RESPECT TO PROPERTY WITHIN AND WITHOUT THIS STATE AND ON
ALL SUBSEQUENT RETURNS UNLESS THE BANK OR TRUST COMPANY RECEIVES
PRIOR PERMISSION FROM THE COMPTROLLER OR THE COMPTROLLER REQUIRES A
DIFFERENT METHOD OF DETERMINING AVERAGE VALUE.

(5) (I) THE AVERAGE VALUE OF REAL PROPERTY AND TANGIBLE
PERSONAL PROPERTY THAT THE BANK OR TRUST COMPANY HAS RENTED FROM
ANOTHER AND WHICH IS NOT TREATED AS PROPERTY OWNED BY THE BANK OR
TRUST COMPANY 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 WHICH PROPERLY REFLECTS THE VALUE
MAY BE ADOPTED BY THE COMPTROLLER OR BY THE BANK OR TRUST COMPANY
WHEN APPROVED IN WRITING BY THE COMPTROLLER. ONCE APPROVED, SUCH
OTHER METHOD OF VALUATION MUST BE USED ON ALL SUBSEQUENT RETURNS
UNLESS THE BANK OR TRUST COMPANY RECEIVES PRIOR APPROVAL FROM THE
COMPTROLLER OR THE COMPTROLLER 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 BANK OR TRUST COMPANY IS CONSIDERED TO BE LOCATED
WITHIN THIS STATE IF IT IS PHYSICALLY LOCATED, SITUATED OR USED WITHIN THIS
STATE.

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