280 LAWS OF MARYLAND.
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they may deem expedient, may be invested in the
bonds and shares of railroad companies, and in
other public and private securities, which, being
placed in Europe or elsewhere, may be sold or held
as the basis of a credit, enabling the company to
obtain money and credit upon such time and upon
such terms as will enable them advantageously to
use the same, and especially to make loans and
advances to railroad companies, farmers, planters,
manufacturers and others, upon terms more favor-
able than such loans are usually made by banks,
and also to authorize them to guarantee the pay-
ment of notes and bonds, and the performance of
the contracts of States, governments, towns,
cities, counties, companies, corporations and indi-
viduals, and to authorize them as a company to
make all requisite contracts, and especially to
receive and hold on deposit or in trust any estate
or property, real or personal, including notes,
bonds and accounts, and the same to purchase,
adjust, collect and settle, as by contract may be
agreed., and also to sell and dispose thereof in any
market in the United States or elsewhere, for such
price and in such manner and upon such terms as
may be agreed upon between them and the persons
or parties contracting with them, and also to make
advances of money and of credit, and to deal in
exchange, foreign and domestic, and may insure
persons and houses and goods and all species of
property against damage or loss by fire or water,
or any other casualty whatsoever. |
Capital stock
—how paid,
&c. |
Sec. 2. And be it enacted, That the capital
of said company shall consist of shares of ten dol-
lars each, and fifty per cent. thereof shall be
appropriated for and used as the active capital,
and fifty per cent. shall be invested by the Direc-
tors in good securities and held as a reserve fund
pledged for the payment of any contingent liabil-
ity which may be created in the course of their
business; and should any part of the reserved fund
be at any time used in payment of any such lia-
bility, it shall be the duty of the Directors to
reinstate the sums thus used by appropriating
thereto so much of the current income as may be
requisite therefor, and no distribution of profits
shall at any time be made so long as there may
be any deficiency in the funds reserved as afore- |
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