In this chapter, the following terms have the meanings indicated. Terms Defined. Banking institution. “Banking institution” means a: Commercial bank; Savings bank, except a savings bank chartered by the Office of Thrift Supervision; Trust company; Company that substantially competes with national banks in the State; Credit company; Finance company, other than a finance company that makes loans only to farmers for agricultural purposes; International banking facility; Loan company; Mortgage company; Safe-deposit company; or Savings and loan association. “Banking institution” does not include: A company licensed under the federal Small Business Investment Act of 1958; A corporation that elects to be taxed as a small business corporation under Subchapter S of the Internal Revenue Code; An entity that is a real estate mortgage conduit as defined in the Internal Revenue Code; or A limited liability company. “Billing address” means the location indicated in the books and records of the taxpayer on the first day of the taxable year, or on a later date in the taxable year when the customer relationship began, as the address where any notice, statement, or bill relating to a customer's account is mailed. “Borrower or credit card holder located in this State” means a: Borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this State; or Borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this State. Commercial Domicile. “Commercial domicile” means: The headquarters of the trade or business; that is, the place from which the trade or business is principally managed and directed; or If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, the state of the United States or the District of Columbia from which the taxpayer's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer's trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of the employees are performed as of the last day of the taxable year. “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. “Credit card” means a credit, debit, travel, or entertainment card. “Credit card issuer's reimbursement fee” means the fee a taxpayer receives from a merchant's bank because one of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card. “Employee” means, with respect to a particular taxpayer, an individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. “Financial institution holding company” means a financial institution whose: Only activities are the maintenance and management of intangible investments, and the collection and distribution of income from intangible investments; and Principal income is interest and dividends from one or more of the entities described in §B(1)(a)(v)—(xi) of this regulation. Gross Rents. “Gross rents” means the actual sum of money or other consideration payable for the use or possession of property. “Gross rents” includes, but is not limited to: Any amount payable for the use or possession of real property or tangible property whether designated as a fixed sum of money or as a percentage of receipts, profits, or otherwise; Any amount payable as additional rent or in lieu of rent, such as interest, taxes, insurance, repairs, or any other amount required to be paid by the terms of a lease or other arrangement; and A proportionate part of the cost of any improvement to real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement. Under §B(9)(b)(iii) of this regulation, the amount to be included in gross rents is the amount of amortization or depreciation allowed in computing the taxable income base for the taxable year. However, where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight, and the value of the building is determined in the same manner as if owned by the taxpayer. “Gross rents” does not include: Reasonable amounts payable as separate charges for water and electric service furnished by the lessor; Reasonable amounts payable as service charges for janitorial services furnished by the lessor; Reasonable amounts payable for storage, if the amounts are payable for space not designated and not under the control of the taxpayer; and That portion of any rental payment which is applicable to the space subleased from the taxpayer and not used by it. Loan. “Loan” means an extension of credit resulting from direct negotiations between the taxpayer and its customer, or the purchase, in whole or in part, of the extension of credit from another. “Loan” includes participations, syndications, and leases treated as loans for federal income tax purposes. “Loan” does not include: Properties treated as loans under §595 of the Internal Revenue Code as in effect January 1, 1996; Futures or forward contracts; Options; Notional principal contracts such as swaps; Credit card receivables, including purchased credit card relationships; Non-interest-bearing balances due from depository institutions; Cash items in the process of collection; Federal funds sold; Securities purchased under agreements to resell; Assets held in a trading account; Securities; Interests in a REMIC, as defined in §860D of the Internal Revenue Code, or other mortgage-backed or asset-backed security; and Other similar items. “Loan secured by real property” means a loan in which 50 percent or more of the aggregate value of the collateral, when valued at fair market value as of the time the original loan was incurred, was real property. “Merchant discount” means the fee or negotiated discount charged to a merchant by the taxpayer for the privilege of participating in a program by which a credit card is accepted in payment for merchandise or services sold to the card holder. “Participation” means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower. Principal Base of Operations. “Principal base of operations” with respect to transportation property means the place from which that property is regularly directed or controlled. “Principal base of operations” with respect to an employee means the place from which the employee regularly: Starts work and to which the employee customarily returns in order to receive instructions from the employer; Communicates with customers or other persons; or Performs any other functions necessary to the exercise of the employee's trade or profession at some other point or points. Real Property Owned. “Real property owned” means real property: On which the taxpayer may claim depreciation for federal income tax purposes; or To which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, or could claim depreciation if subject to federal income tax. “Real property owned” does not include property acquired in lieu of or pursuant to a foreclosure. “Regular place of business” means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied, and used by employees of the taxpayer. “Syndication” means an extension of credit in which two or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount. Tangible Personal Property Owned. “Tangible personal property owned” means tangible personal property: On which the taxpayer may claim depreciation for federal income tax purposes; or To which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, or could claim depreciation if subject to federal income tax. “Tangible personal property owned” does not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure. “Taxpayer” means a banking institution engaged in or conducting business in this State. “Transportation property” means vehicles and vessels capable of moving under their own power, such as aircraft, trains, water vessels, and motor vehicles, as well as any equipment or containers attached to the property, such as rolling stock, barges, trailers, or similar items.