H.B. 1154                                                     VETOES

2. THE BANK OR TRUST COMPANY 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 BANK OR
TRUST COMPANY TO A PLACE IN ANOTHER STATE WHICH IS NOT A REGULAR PLACE
OF BUSINESS, IT SHALL BE PRESUMED, SUBJECT TO REBUTTAL BY THE BANK OR
TRUST COMPANY 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 BANK OR TRUST COMPANY'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 BANK OR TRUST COMPANY
INITIATES THE CONTACT WITH THE CUSTOMER. SUCH ACTIVITY IS LOCATED AT THE
REGULAR PLACE OF BUSINESS WHICH THE BANK OR TRUST COMPANY'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
BANK OR TRUST COMPANY. IF THE CUSTOMER'S INITIAL CONTACT WAS NOT AT A
REGULAR PLACE OF BUSINESS OF THE BANK OR TRUST COMPANY, 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 BANK OR TRUST COMPANY DETERMINE THE
CREDITWORTHINESS 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 BANK OR TRUST COMPANY'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 BANK OR TRUST COMPANY 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 BANK OR TRUST COMPANY'S EMPLOYEES ARE REGULARLY CONNECTED
WITH OR WORKING OUT OF, REGARDLESS OF WHERE THE SERVICES OF SUCH
EMPLOYEES WERE ACTUALLY PERFORMED.

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