434

LAWS OF MARYLAND.

manner as its by-laws shall prescribe, but no share-

holder in this bank shall have power to sell or trans-

fer any share held in his own right so long as.he shall

be liable either as principal debtor, surety or other-

wise to the bank for any debt which shall have be-

come due, and remain unpaid, nor in any case shall

such shareholder be entitled to receive any dividend,

interest or profit on such shares so long as such lia-

bilities shall continue, but all such dividends, inter-

ests and profits shall be retained by the bank, and

applied to the discharge of such liabilities; and no

stock shall be transferred without the consent of a

majority of the directors while the holder thereof, is

indebted to the bank.

SEC. 11. And be it enacted, That said bank shall

Shall not take.

not take as. security for any loan or discount a lien

upon any part of its capital stock, and said bank shall

not be the holder or purchaser of any portion of its

capital stock or the capital stock of any other in-

corporated company, unless such purchase be neces-

sary to prevent loss upon a debt previously con-

tracted in good faith upon security which at the

time was deemed adequate to insure the payment of

such debt independent of any lien upon an ch stock.

SEC. 12. And be it enacted, That half-yearly divi-

Dividends

dends shall be made to the stockholders, of so much

of the net profits of the corporation, as shall appear

to the President and Directors advisable ; and such

dividends shall be declared in the months of June

and December, and shall be paid on, and after the

second Monday of the ensuing month after they are

declared: and if the directors shall at any time wil-

fully and knowingly make or declare any dividend,

Impair the
capital stock

which shall impair the capital stock, all the directors

present at the making or declaring such dividend

and consenting thereto, shall be liable in their indi-

vidual capacity to the corporation, for the amount or

proportion of the said capital stock so divided by the

directors, and each director who shall be present at

the making or declaring of such dividend, shall be

deemed to have consented thereto, unless he shall

immediately enter his dissent in writing on the min-

utes of the proceedings of the board, and give public

notice to the stockholders that such dividend has

been declared.