(j) "Loan" means any extension of credit resulting from direct negotiations between the taxpayer and the taxpayer's customer, or the purchase, in whole or in part, of an extension of credit from another.(i) Loan includes participations, syndications, and leases treated as loans for federal income tax purposes.
(ii) Loan does not include properties treated as loans under Section 595 of the federal Internal Revenue Code, 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 real estate mortgage investment conduit as defined in Section 860D of the Internal Revenue Code, or other mortgage-backed or asset-backed security, and other similar items.
(k) "Loans secured by real property" means that [fifty percent]50% or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property. (l) "Merchant discount" means the fee, or negotiated discount, charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the card holder.
(m) "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.
(n) "Person" means an individual, estate, trust, partnership, corporation, and any other business entity.
(o) "Principal base of operations" means:
(i) with respect to transportation property, the place of more or less permanent nature from which that property is regularly directed or controlled; and
(ii) with respect to an employee, the place of more or less permanent nature from which the employee regularly:
(A) starts [his]the employee's work and to which [he]the employee customarily returns [in order ]to receive instructions from [his]the employee's employer; (B) communicates with [his]the employee's customers or other persons; or (C) performs any other functions necessary to the exercise of [his]the employee's trade or profession at some other point or points. (p)(i) "Real property owned" and "tangible personal property owned" mean real and tangible personal property, respectively:
(A) on which the taxpayer may claim depreciation for federal income tax purposes; or
(B) property 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.
(ii) Real and tangible personal property do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
(q) "Regular place of business" means an office at which the taxpayer carries on business in a regular and systematic manner and is continuously maintained, occupied, and used by employees of the taxpayer.
(r) "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 any foreign country.
(s) "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.
(t) "Taxable" means:
(i) a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax, including a bank shares tax, a single business tax, an earned surplus tax, or any tax imposed upon or measured by net income; or
(ii) another state has jurisdiction to subject the taxpayer to taxes regardless of whether that state [actually ]imposes those taxes. (u) "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 that property, such as rolling stock, barges, and trailers.
(2)[ Apportionment and Allocation. ](a) A financial institution whose business activity is taxable both within and without this state, or a financial institution whose business activity is taxable within this state and is a member of a unitary group that includes one or more financial institutions where any member of the group is taxable without this state, shall allocate and apportion its net income as provided in this rule. All items of nonbusiness income shall be allocated [pursuant to the provisions of]in accordance with Section 59-7-306. A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico, or a territory or possession of the United States, whose effectively connected income, as defined under the federal Internal Revenue Code, is taxable both within this state and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in this rule. (b) The fraction by which business income shall be apportioned to the state shall be determined in accordance with [rule]Subsections R865-6F-8(4) and (7). Except as modified by this rule, the property factor shall be determined in accordance with Subsection R865-6F-8(8), the payroll factor in accordance with Subsection R865-6F-8(9), and the sales factor in accordance with Subsection R865-6F-8(10). (c) Each factor shall be computed according to the cash or accrual method of accounting as used by the taxpayer for the taxable year.
(d) If a unitary group of corporations filing a combined report includes one or more corporations meeting the definition of financial institution and one or more corporations that do not meet that definition, the provisions of this rule regarding the calculation of the property, payroll, and [receipts]sales factors of the apportionment fraction shall apply only to those corporations meeting the definition of financial institution. Those corporations not meeting the definition of financial institution shall compute their apportionment data based on [rule]Section R865-6F-8 or such other industry apportionment rule adopted by the commission that may be applicable. The apportionment data of all members of the unitary group shall be included in calculating a single apportionment fraction for the unitary group. The numerators and denominators of the property, payroll, and [receipts]sales factors of the financial institutions shall be added to the numerators and denominators, respectively, of the property, payroll, and sales factors of the nonfinancial institutions to determine the property, payroll, and sales factors of the unitary group. ](a) [In general. ]The [receipts]sales factor is a fraction, the numerator of which is the receipts of the taxpayer in this state during the taxable year and the denominator of which is the receipts of the taxpayer within and without this state during the taxable year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. The [receipts]sales factor shall include only those receipts that constitute business income and are included in the computation of the apportionable income base for the taxable year. 
