necessary, verifies them and corrects any irregularities or recom-
mends changes. The Department supervises the formation of new
banking institutions and issues a certificate authorizing them to
commence business. The Commissioner approves or disapproves all
applications made by a state bank, trust company, or mutual savings
institution for a branch office. He also passes upon all amendments
to charters and all consolidations and voluntary liquidations. On
February 10 of each year, the Bank Commissioner must make a
written report to the Governor (Code 1951, 1957 supp„ Art. 11,
secs. 1-26, 28-117).

The General Assembly of 1929 passed what is known as the
"Credit Union Law," which provides that any seven or more per-
sons, residents of this State, may apply to the Bank Commissioner
for permission to organize a Credit Union. The Commissioner super-
vises all such credit unions (Code 1951, Art. 11, secs. 135-62).

The Department also has jurisdiction over industrial finance loan
companies under the provisions of the "Industrial Finance Law,"
passed in 1945. The Act generally provides that no person or cor-
poration may charge interest or other charges in the aggregate
above that permitted by law on loans of fifteen hundred dollars or
less if this person or corporation is not a licensee under the terms
of the law. All companies and individuals transacting business un-
der the terms of this statute must secure a license from the Bank
Commissioner. At least once in every eighteen months, the Depart-
ment is required to examine each licensee; and each licensee must
submit to the Commissioner an annual report setting forth such
information as the Commissioner may reasonably require. The Bank
Commissioner has the power to revoke or suspend licenses for in-
fractions of the law. He also has the power to exempt certain com-
panies from the terms of the "Industrial Finance Act." Automati-
cally exempted from the Act are those companies and individuals
that are doing business under the terms of the "Small Loan Law,"
which is administered by the Administrator of Loan Laws (Code
1951, Art. 11, secs. 163-205).

Appropriations 1957 1958

General Funds . $208,439 $222 386
Staff: 34.

BANKING BOARD

J. Millard Tawes, Comptroller of the Treasury
Charles W. Hull, Baltimore Clearing House, 1961
S. Page Nelson, Associated Mutual Savings Banks of Baltimore

1962
F. Ross Myers, Maryland State Bankers' Association, 1959

The Banking Board, established in 1935, is composed of the Comp-
troller of the Treasury, and three members appointed by the Gov-
ernor from lists of nominees submitted by (1) the Baltimore Clear-
ing House, (2) the Associated Mutual Savings Banks of Baltimore,
and (3) the Maryland State Bankers' Association. Members hold
office for six years, one term expiring every two years. The Board
meets at the call of the Bank Commissioner to consult with him in
matters pertaining to the banking business or banking institutions
in Maryland (Code 1951, Art. 11, sec. 27).