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in a newspaper published in the city, village or county in which the bank or trust company is located, and if no newspaper is there published, then in the nearest county seat.

1912, art. 11, sec. 60. 1910, ch. 219, sec, 60. 1914, ch. 805, sec. 60.

61. Any banking institution doing business under this Act may, by action of its board of directors, place its affairs and assets in the hands and under the control of the Bank Commissioner, by posting a notice on its front door, as follows: "This institution is in the hands of the Bank Commissioner." Immediately upon posting such notice, the said institution shall notify the Bank Commissioner of such action. The posting of such notice or the taking possession of any banking institution by the Bank Commissioner shall be sufficient to place all its assets and property of whatever nature in the possession of the Bank Commissioner, as receiver.

1910, ch. 19, sec. 61. 62. Every bank (other than a savings bank without capitai stock) shall keep on hand at all times a cash reserve of at least 5 per cent. of its deposits, payable on demand, and an additional reserve of 10 per cent. of such deposits, which last mentioned reserve may be kept on deposit in such bank or banks, or trust company or trust companies of the State of Maryland, or elsewhere, of good standing, as the board of directors, by resolution, may direct. Every trust company shall keep on hand at all times a reserve of at least ten per cent.

deposits payable on demand (not including thereunder, however, any deposits made by the City of Baltimore and secured by the counter deposits of Baltimore City stock) ; which reserve shall be kept on deposit in such bank or bauks, or trust company or trust companies, of good standing, either in the State of Maryland or elsewhere, as the board of director's or the executive committee thereof may direct; and every trust company shall also keep on hand, as an additional reserve, at least 5 per cent. of the amount of such deposits, which additional reserve may be kept on deposit in such bank or banks or trust company or trust companies as the board of directors or executive committee thereof may direct, or in the form of registered bonds or public stock of the United States, or the

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State of Maryland, or of Baltimore City, or of the bonds of any county or municipal corporation of this State, which shall be approved by the Bank Commissioner; provided, however, that any securities which have been deposited by any such trust company with the Treasurer of the State, in accordance with Sections 110 and 118 of Article 23 of the Annotated Code of Public Civil Laws of Maryland, may be considered as the whole or a part, as the case may be, of said last-mentioned required 5 per cent, reserve. Cash items shall not be considered as a part of the reserve herein required to be kept by either banks or trust companies, but cash actually on hand held by a trust company shall be considered as a part of the reserve herein first re quired to be kept by such trust company.

1914, ch. 805, sec. 61A.

62A. No bank or trust company having a capital stock of $100,000.00 or more, shall carry for a longer period than 90 days, bills payable in an amount greater than its paid in capital, and no bank or trust company with a capital stock of less tha $100,000.00, shall carry for a longer period than 90 days bills payable in an amount greater than its paid in capital and surplus. The period of 90 days herein specified may be extended with the written authority of the Bank Commissioner; but in no case for a longer period than an additional 90 days.

1910, ch. 19, sec. 62.

63. Whenever the reserves of any bank or trust company shall fall below the amount required herein to be kept, such bank or trust company shall not increase its loans or discounts, otherwise than by discounting or purchasing bills of exchange payable at sight on demand, and the Bank Commissioner shall notify any bank or trust company whose reserves may be below the amount herein required, to make good such reserves, and in case the bank or trust company fails for thirty days thereafter to make good such reserves, the Bank Commissioner may notify the Governor, and he may direct the Attorney-General to institute proceedings for the appointment of a receiver or to wind up the business of such bank or trust company.

1910, ch, 219, sec. 63. 64. The total liabilities of any person, co-partnership or corporation, to any bank or trust company for money borrowed, after April 8, 1910, including in the liabilities of the co-partnership the liabilities of the several members thereof, except special partners, shall at no time exceed 20 per cent. of the amount of capital and surplus of such bank or trust company; but the discounting of bills of exchange drawn in good faith against actually existing values, and the discounting of commercial or business paper actually owned by a person on negotiating the same, shall not be considered as money borrowed, provided that by a two-thirds vote of the directors the liabilities of any person, co-partnership or corporation may be increased to a total sum not exceeding 30 per cent. of the capital and surplus of such bank or trust company upon approved

security. Nothing in this section contained shall apply to the · holding by any bank or trust company of negotiable coupon

bonds of any corporation. 1912, art. 11, sec. 05. 1910, ch. 219, sec. 64. 1912, ch. 194, sec, 64, (p. 385).

65. It shall not be lawful for any bank or trust company doing business under the provisions of this Act to loan to any of its officers, directors, clerks or employees, any of the funds of said institution, unless the same shall have been authorized by a resolution of the board of directors, the same to be recorded, or unless said loan be secured by responsible indorsement or sufficient collateral security (the provisions of this section shall be subject, however, to the provisions of Section 64 of this Act).

1910, ch. 219, sec. 65. 66. It shall be unlawful for any officer, clerk or agent of any bank or trust company, doing business under this Article, to certify any check, draft or order drawn upon the bank or trust company unless the person, firm or corporation drawing such check, draft or order has on deposit at the time an amount of money equal to the amount specified in such check, draft or order. Any check, draft or order so certified by the duly authorized officer shall be a good and valid obligation against such bank or trust company.

See art. 13, sec. 203, et seq.

1910, ch. 219, sec. 66. 67. The board of directors of a bank or trust company may declare a dividend from so much of its net profits, after providing for all expenses, losses, interest and taxes accrued or due from said bank or trust company, as they shall deem expedient; but before any such dividend is declared, not less than one-tenth of the net profits for the preceding half year, or for such period as is covered by the dividend, shall be carried to a surplus fund, until such surplus fund shall amount to 20 per cent. of the capital stock. Any losses sustained in excess of its undivided profits may be charged to its surplus account; provided, that its surplus fund shall thereafter be reimbursed from its net earnings, and no dividends shall be declared or paid in excess of one-half of its net earnings, unless or until its surplus fund shall be fully restored to the amount of 20 per cent. of its capital as hereby required.

1910, ch, 219, sec. 67. 68. No dividend shall be paid to any stockholder of a bank or trust company hereafter incorporated until the capital stock has been fully paid in, and no dividend shall thereafter be declared or paid by the directors except out of the net profits properly applicable thereto, and which shall not in any way impair or diminish the capital; and if any such shall be paid, every stockholder receiving the same shall be liable to restore the full amount thereof, unless the capital is subsequently made good; and if the directors shall pay any dividend before the capital stock is fully paid in, or shall pay such dividend when the corporation is insolvent or in danger of insolvency, or not having reason to believe that there were sufficient net profits properly applicable thereto to pay the same without impairing or diminishing the capital, they shall be jointly and severally liable to the creditors of the corporation at the time of declaring such dividends to double the amount thereof.

1910, ch. 219, sec. 08. 69. Stockholders of every bank and trust company shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts and engagements of every such corporation, to the extent of the amount of their stock

therein, at the par value thereof, in addition to the amount invested in such stock. Persons having stock entered on the books of the corporation in their names as executor, administrator, guardian, trustee or pledgee, shall not be personally subject to any liability on such stock, but the one pledging stock, and the estate and funds in the hands of such executor, administrator, guardian or trustee shall be subject to the liability imposed upon the holders of said shares; and the liability of such stockholders shall be an asset of the corporation for the benefit ratably of all the depositors and creditors of any such corporation, if necessary to pay the debts of such corporation, and shall be enforceable only by appropriate proceedings by a receiver, assignee or trustee of such corporation acting under the orders of a Court of competent jurisdiction. Nothing in this section or Article shall be construed to repeal or affect the existing rights of creditors or liabilities of stockholders of any trust company under the existing law at the time of the passage or taking effect of this Article. *

1910, ch. 219, sec. 69. 70. The shares of stock of an incorporated bank or trust company shall be deemed personal property, and shall be transferred on the books of the corporation in such manner as the by-laws thereof may direct, and no transfer of stock shall be valid while the corporation is under notice to make good the impairment of its capital, as provided in this Article, nor until such impairment shall have been made good.

1910, ch. 219, sec. 70. 71. Whenever any deposit shall be made in any bank or savings institution or trust company, by and in the name of any minor or female, being or thereafter becoming a married woman, the same shall be held for the exclusive right and benefit of such minor or female, and free from the control or lien of all persons whatsoever, except creditors, and shall be paid, with any interest due thereon, to the person in whose name the deposit shall have been made, and the receipt of such minor or

• As to law prior to Act 1910, see Murphy vs. Wheatley, 102 Md., 514. As to Safe Deposit, Trust and Loan Companies Stockholders' Liability, see Art. 23, sec, 116.

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