PARRIS N. GLENDENING, Governor                          H.B. 1154

4. "APPROVAL" IS THE PROCEDURE WHEREBY EMPLOYEES
OR THE BOARD OF DIRECTORS OF THE BANK OR TRUST COMPANY MAKE THE FINAL
DETERMINATION WHETHER TO ENTER INTO THE 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. IF THE BOARD OF DIRECTORS MAKES THE FINAL DETERMINATION,
SUCH ACTIVITY IS LOCATED AT THE COMMERCIAL DOMICILE OF THE BANK OR
TRUST COMPANY.

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.

(E) (1) THE PAYROLL FACTOR IS A FRACTION, THE NUMERATOR OF WHICH
IS THE TOTAL AMOUNT PAID IN THIS STATE DURING THE TAXABLE YEAR BY THE
BANK OR TRUST COMPANY FOR COMPENSATION AND THE DENOMINATOR OF
WHICH IS THE TOTAL COMPENSATION PAID BOTH WITHIN AND WITHOUT THIS
STATE DURING THE TAXABLE YEAR. THE PAYROLL FACTOR SHALL INCLUDE ONLY
THAT COMPENSATION WHICH IS INCLUDED IN THE COMPUTATION OF THE
APPORTIONABLE INCOME TAX BASE FOR THE TAXABLE YEAR.

(2) PAYMENTS MADE TO ANY INDEPENDENT CONTRACTOR OR ANY
OTHER PERSON NOT PROPERLY CLASSIFIABLE AS AN EMPLOYEE SHALL BE
EXCLUDED FROM BOTH THE NUMERATOR AND DENOMINATOR OF THE FACTOR.

(3) COMPENSATION IS PAID IN THIS STATE IF ANY ONE OF THE
FOLLOWING TESTS, APPLIED CONSECUTIVELY, IS MET;

(I) THE EMPLOYEE'S SERVICES ARE PERFORMED ENTIRELY
WITHIN THIS STATE.

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