136.500 Definitions for KRS 136.500 to 136.575.
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<![CDATA[136.500 Definitions for KRS 136.500 to 136.575. As used in KRS 136.500 to 136.575, unless the context requires otherwise: <br>(1) "Billing address" means the location indicated in the books and records of the financial institution, on the first day of the taxable year or the date in the taxable <br>year when the customer relationship began, as the address where any notice, <br>statement, or bill relating to a customer's account is mailed; (2) "Borrower located in this state" means a borrower, other than a credit card holder, that is engaged in a trade or business that maintains its commercial domicile in this <br>state or a borrower that is not engaged in a trade or business; (3) "Credit card holder located in this state" means a credit card holder whose billing address is in this state; (4) "Department" means the Department of Revenue; <br>(5) "Commercial domicile" means: (a) The location from which the trade or business is principally managed and directed; or (b) The state of the United States or the District of Columbia from which the financial institution's trade or business in the United States is principally <br>managed and directed, if a financial institution is organized under the laws of <br>a foreign country, the Commonwealth of Puerto Rico, or any territory or <br>possession of the United States. It shall be presumed, subject to rebuttal, that the location from which the financial <br>institution's trade or business is principally managed and directed is the state of the <br>United States or the District of Columbia to which the greatest number of <br>employees are regularly connected or out of which they are working, irrespective of <br>where the services of the employees are performed, as of the last day of the taxable <br>year; (6) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services that are included in the <br>employee's gross income under the Internal Revenue Code. In the case of employees <br>not subject to the Internal Revenue Code, the determination of whether the <br>payments would constitute gross income to the employees under the Internal <br>Revenue Code shall be made as though the employees were subject to the Internal <br>Revenue Code; (7) "Credit card" means credit, travel, or entertainment card; <br>(8) "Credit card issuer's reimbursement fee" means the fee a financial institution receives from a merchant's bank because one (1) of the persons to whom the <br>financial institution has issued a credit card has charged merchandise or services to <br>the credit card; (9) "Employee" means, with respect to a particular financial institution, "employee" as defined in Section 3121(d) of the Internal Revenue Code; (10) "Financial institution" means: (a) A national bank organized as a body corporate and existing or in the process of organizing as a national bank association pursuant to the provisions of the <br>National Bank Act, 12 U.S.C. secs. 21 et seq., in effect on December 31, <br>1997, exclusive of any amendments made subsequent to that date; (b) Any bank or trust company incorporated or organized under the laws of any state, except a banker's bank organized under KRS 286.3-135; (c) Any corporation organized under the provisions of 12 U.S.C. secs. 611 to 631, in effect on December 31, 1997, exclusive of any amendments made <br>subsequent to that date, or any corporation organized after December 31, <br>1997, that meets the requirements of 12 U.S.C. secs. 611 to 631, in effect on <br>December 31, 1997; or (d) Any agency or branch of a foreign depository as defined in 12 U.S.C. sec. 3101, in effect on December 31, 1997, exclusive of any amendments made <br>subsequent to that date, or any agency or branch of a foreign depository <br>established after December 31, 1997, that meets the requirements of 12 U.S.C. <br>sec. 3101 in effect on December 31, 1997; (11) "Gross rents" means the actual sum of money or other consideration payable for the use or possession of property. <br>(a) "Gross rents" includes but is not limited to: 1. Any amount payable for the use or possession of real property or <br>tangible property, whether designated as a fixed sum of money or as a <br>percentage of receipts, profits, or otherwise; 2. Any amount payable as additional rent or in lieu of rent, such as interest, <br>taxes, insurance, repairs, or any other amount required to be paid by the <br>terms of a lease or other arrangement; and 3. A proportionate part of the cost of any improvement to real property <br>made by or on behalf of the financial institution which reverts to the <br>owner or lessor upon termination of a lease or other arrangement. The <br>amount to be included in gross rents is the amount of amortization or <br>depreciation allowed in computing the taxable income base for the <br>taxable year. However, where a building is erected on leased land by or <br>on behalf of the financial institution, the value of the land is determined <br>by multiplying the gross rent by eight (8) and the value of the building is <br>determined in the same manner as if owned by the financial institution; (b) The following are not included in the term "gross rents": 1. Reasonable amounts payable as separate charges for water and electric <br>service furnished by the lessor; 2. Reasonable amounts payable as service charges for janitorial services <br>furnished by the lessor; 3. Reasonable amounts payable for storage, if these amounts are payable <br>for space not designated and not under the control of the financial <br>institution; and 4. That portion of any rental payment which is applicable to the space <br>subleased from the financial institution and not used by it; (12) "Internal Revenue Code" means the Internal Revenue Code, Title 26 U.S.C., in effect on December 31, 2001, exclusive of any amendments made subsequent to <br>that date; (13) "Loan" means any extension of credit resulting from direct negotiations between the financial institution and its customer, and the purchase, in whole or in part, of the <br>extension of credit from another. Loans include participations, syndications, and <br>leases treated as loans for federal income tax purposes. Loans shall not include <br>properties treated as loans under Section 595 of the Internal Revenue Code, futures <br>or forward contracts, options, notional principal contracts such as swaps, credit card <br>receivables, including purchased credit card relationships, noninterest-bearing <br>balances due from depository institutions, cash items in the process of collection, <br>federal funds sold, securities purchased under agreements to resell, assets held in a <br>trading account, securities, interests in a real estate mortgage investment company, <br>or other mortgage-backed or asset-backed security, and other similar items; (14) "Loan secured by real property" means a loan or other obligation for which fifty percent (50%) or more of the aggregate value of the collateral used to secure the <br>loan or other obligation, when valued at fair market value as of the time the original <br>loan or obligation was incurred, was real property; (15) "Merchant discount" means the fee or negotiated discount charged to a merchant by the financial institution for the privilege of participating in a program where a credit <br>card is accepted in payment for merchandise or services sold to the card holder; (16) "Person" means an individual, estate, trust, partnership, corporation, limited liability company, or any other business entity; (17) "Principal base of operations" means: (a) With respect to transportation property, the place from which the property is regularly directed or controlled; and (b) With respect to an employee: 1. The place the employee regularly starts work and to which the employee <br>customarily returns in order to receive instructions from his or her <br>employer; or 2. If the place referred to in subparagraph 1. of this paragraph does not <br>exist, the place the employee regularly communicates with customers or <br>other persons; or 3. If the place referred to in subparagraph 2. of this paragraph does not <br>exist, the place the employee regularly performs any other functions <br>necessary to the exercise of the employee's trade or profession at some <br>other point or points; (18) "Real property owned" and "tangible personal property owned" mean real and tangible personal property, respectively, on which the financial institution may <br>claim depreciation for federal income tax purposes, or property to which the <br>financial institution holds legal title and on which no other person may claim depreciation for federal income tax purposes or could claim depreciation if subject <br>to federal income tax. Real and tangible personal property do not include coin, <br>currency, or property acquired in lieu of or pursuant to a foreclosure; (19) "Regular place of business" means an office at which the financial institution carries on its business in a regular and systematic manner and which is continuously <br>maintained, occupied, and used by employees of the financial institution; (20) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or <br>any foreign country; (21) "Syndication" means an extension of credit in which two (2) or more persons fund and each person is at risk only up to a specified percentage of the total extension of <br>credit or up to a specified dollar amount; (22) "Taxable year" means calendar year 1996 and every calendar year thereafter; <br>(23) "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 <br>equipment or containers attached to the property, such as rolling stock, barges, or <br>trailers; (24) "United States obligations" means all obligations of the United States exempt from taxation under 31 U.S.C. sec. 3124(a) or exempt under the United States <br>Constitution or any federal statute, including the obligations of any instrumentality <br>or agency of the United States that are exempt from state or local taxation under the <br>United States Constitution or any statute of the United States; and (25) "Kentucky obligations" means all obligations of the Commonwealth of Kentucky, its counties, municipalities, taxing districts, and school districts, exempt from <br>taxation under the Kentucky Revised Statutes and the Constitution of Kentucky. Effective: June 20, 2005 <br>History: Amended 2005 Ky. Acts ch. 85, sec. 330, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 255, sec. 1, effective July 15, 2002. -- Amended 1998 Ky. Acts <br>ch. 402, sec. 1, effective April 7, 1998. -- Created 1996 Ky. Acts ch. 254, sec. 2, <br>effective July 15, 1996. Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247 instructs the Reviser of Statutes to adjust KRS references throughout the statutes to conform <br>with the 2006 renumbering of the Financial Services Code, KRS Chapter 286. Such <br>an adjustment has been made in this statute. ]]>