Section 10-403 - Allocation of interest received by financial institution from subsidiary. - Maryland Statutes

§ 10-403. Allocation of interest received by financial institution from subsidiary.
 

(a)  Definitions.-  

(1) In this section the following words have the meanings indicated. 

(2) (i) "Financial institution" means: 

1. a credit company; 

2. except as provided in subparagraph (ii) 1 of this paragraph, a finance company; 

3. an international banking facility; 

4. a loan company; 

5. a mortgage company; 

6. a safe-deposit company; and 

7. a savings and loan association. 

(ii) "Financial institution" does not include: 

1. a finance company that makes loans only to farmers for agricultural purposes; 

2. a company licensed under the federal Small Business Investment Act of 1958; 

3. a corporation that elects to be taxed as a small business corporation under Subchapter S of the Internal Revenue Code; 

4. an entity that is a real estate mortgage investment conduit as defined in the Internal Revenue Code; 

5. a limited liability company; or 

6. a commercial bank, savings bank, trust company, or company that substantially competes with national banks in the State. 

(3) "Financial institution holding company" means a financial institution whose only activities are: 

(i) the maintenance and management of intangible investments; and 

(ii) the collection and distribution of income from intangible investments. 

(b)  Allocation.- Notwithstanding § 10-402 of this subtitle, interest received by a financial institution holding company from one of its subsidiary corporations that is a financial institution shall be allocated to this State only to the extent that the interest is derived from the trade or business of the subsidiary corporation within this State. 
 

[2000, ch. 225, § 1.]