department of state

Office of the State Banking Commissioner

Statutory Authority: 5 Delaware Code,

Section 121(b) (5 Del.C. §121(b))

5 DE Admin. Code 1113

ORDER ADOPTING AMENDED REGULATION 708

AND NEW REGULATIONS 714 AND 1113

1113 Election by a Subsidiary Corporation of a Banking Organization or Trust Company to be Taxed in Accordance with Chapter 19 of Title 30

final

1.0 Qualifications for Election

Pursuant to 5 Del.C. §1101(e), a subsidiary corporation of a banking organization or trust company may elect to be taxed in accordance with Chapter 19 of Title 30 if the subsidiary is not itself a banking organization or trust company, if the subsidiary is not described in §1902(b)(8) of Title 30, and if the subsidiary is not engaged in the sale, distribution, underwriting of, or dealing in, securities.

2.0 Effect

If a valid election is made, the electing subsidiary shall not be considered a subsidiary corporation of its parent banking organization or trust company for the purposes of Chapter 11 of Title 5, and the income of the electing subsidiary shall be excluded from the taxable income of its parent banking organization or trust company for the tax year involved.

3.0 Filing

An electing subsidiary shall make this election by filing the original of Form A under this regulation with the State Bank Commissioner; 555 E. Loockerman Street; Suite 210; Dover, DE, 19901 and a copy with the Delaware Division of Revenue; 820 N. French Street; Wilmington, DE 19801.

4.0 Reporting Requirements

Every year, an electing subsidiary shall file with the State Bank Commissioner on or before the date that its Delaware State Income Tax Return is due (1) Form B under this regulation, and (2) a copy of its Delaware State Income Return as filed with the Delaware Division of Revenue.

5.0 Termination of Election

An election under this regulation remains in effect until terminated. An electing subsidiary may terminate its election by filing a notice to that effect with the State Bank Commissioner and the Delaware Division of Revenue.

FORM A

Election of a Subsidiary Corporation to be Taxed in Accordance with Chapter 19 of Title 30

The subsidiary corporation identified below hereby elects to be taxed in accordance with Chapter 19 of Title 30 of the Delaware Code.

1. (a) Name and address of subsidiary corporation:

________________________________________________

(b) State of incorporation of subsidiary corporation: ____________________

________________________________________________

2. (a) Name and principal place of business of subsidiary corporation’s parent banking organization or trust company:

________________________________________________

(b) Percentage of outstanding voting shares of subsidiary corporation owned by parent banking organization or trust company: ___________________

3. Is the subsidiary corporation engaged in the sale, distribution, underwriting of, or dealing in, securities?

____ yes ____ no

4. Are the activities of the subsidiary corporation within this state confined to the maintenance and management of its intangible investments or of the intangible investments of corporations or business trusts registered as investment companies under the Investment Company Act of 1940 as amended (15 USC 80a-1 et seq.) and the collection and distribution of the income from such investments or from tangible property physically located outside this State within the meaning of 30 Del.C. § 1902(b)(8)? ____ yes ____ no

5. Is the subsidiary corporation a banking organization or trust company as defined by 5 Del.C. §101? ____ yes ____ no

6. Describe the principal activities of the subsidiary corporation:

________________________________________________

7. Effective date of election: ____________________

The undersigned hereby certifies that the undersigned is duly authorized on behalf of the subsidiary corporation to make an election to be taxed under 30 Del.C. Ch. 19 and that all statements herein are true and correct to the best of the undersign’s knowledge and belief.

_______________ __________________________ _______

Date Signature of President, Treasurer Title

or Other Proper Officer

_________________ ____________

Print Name Phone No.

__________________________

Print Address

Mail or deliver original completed form to:

Office of the State Bank Commissioner

555 E. Loockerman Street, Suite 210

Dover, DE 19901

Mail or deliver copy to:

Delaware Division of Revenue

820 N. French Street

Wilmington, DE 19801.

FORM B

Annual Report of a Subsidiary Corporation Electing to be Taxed in Accordance with Chapter 19 of Title 30

Tax Year _________

1. (a) Name and address of subsidiary corporation:

________________________________________________

(b) Federal Employer Identification Number of subsidiary corporation:

________________________________________________

2. (a) Name and address of parent banking organization or trust company:

________________________________________________

(b) Percentage of outstanding voting shares of subsidiary corporation owned by parent banking organization or trust company: ___________________

3. Is the subsidiary corporation engaged in the sale, distribution, underwriting of, or dealing in, securities?

____ yes ____ no

5. Is the subsidiary corporation a banking organization or trust company as defined by 5 Del.C. §101? ___ yes ____ no

Attach copy of the subsidiary corporation’s Delaware Income Tax Return for the tax year listed above.

The undersigned hereby certifies that the undersigned is duly authorized on behalf of the subsidiary corporation to make this return and that all statements herein are true and correct to the best of the undersign’s knowledge and belief.

_______________ ______________________ _________

Date Signature of President, Treasurer Title

or Other Proper Officer

______________________ _________

Print Name Phone No.

__________________________

Print Address

Mail or deliver original completed form to:

Office of the State Bank Commissioner

555 E. Loockerman Street, Suite 210

Dover, DE 19901

8 DE Reg. 474 (9/01/04)