The midland journal. (Rising Sun, Md.) 1885-1947, 1933-06-30
PUBLIC GENERAL LAWS
CHAPTER 34s

AN ACT to repeal and re-enact, with amend
ments, Section IS of Article II of the Ammo
tated Code Of Public General Laws of Mary
land, Edition of 1924, entitled Banks and
Trust Companies" subtitle General Regula-
TONS" further restricting the right of banks
and trust companies to make loans to their
officers and employees.
SECTION l. Be 1t enacted by the General As
Scmbly of Maryland, That Section 68 of Article
II of the Annotated Code of Public General
Laws of Maryland, Edition of 1924, entitled
Blanks and Trust Companies" subtitle General
Regulations" be- and the same is hereby re-
pealed and re-enacted, with amendments, to
read as foows
trust company, other than a director, and no
corporation in which such officer employee is
an officer or the owner Of a majority interest,
and partnership of which such an officer or
employee is a member shall borrow any of the
funds of such bank trust company, directly or
indirectly, without the approval of the Beard of
Directors by resolution adopted at meeting
thereof, and recorded in the minutes before max
ing such loan. Loans made to directors of any
bank or trust company for their personal account
shall be subject to the aforegoing restrictions;
but where any director is actually engaged in
business, loans may be made to him or to any
partnership of which he is member or corpora
tion in which he is officer or the owner of a
majority or less than majority interest, for use
in such business without complying with the
foregoing provisions. Loans to officers, directors
or employees made under the provisions of this
section shall be reviewed every six months for
further action by the Board of Directors, and if
it shall be determined to renew or extend any
such loan, such action be recorded in the minutes
before making such renewal extenton. In
case any bank trust company maintains a
branch it shall be sufficient compliance with the
provisions of this section requiring approval of
the Board of Directors if the advisory board of
said branch approves of any loan to officers.
directors or employees by resolution adopted at a
meeting of such advisory board, and recorded in
the minutes before making such loan and it
shall likewise be sufficient compliance with said
provisions of this section i'll the executive
committee of any bank or trust company is
authorized to make loans, for the said loan to be
approved by resolution adopted at meeting Of
said executive committee and recorded its
minutes before making such loan, provided, how
ever that in case of loans made under the au-
shorty of said advisory boards and executive
committee the same shall be reported to the
Board of Directors at its next meeting. All
loans to officers directors employees of any
bank or trust company shall be subject to the
limitations imposed by Section 81 of this Article.
For the purpose of this section, the term bank"
shall include savings institutions having capital
stock.
SEC. 2. And be it further enacted. That this
Act is hereby declared to be an emergency law
the public health and safety, and having been
three-ffths of all of the members elected to each
of the two houses of the General Assembly, the
same shall take effect from the date of its
passage.
Approved April S. 1888.