ART. 11] RESERVE——LOANS. 255

either in the State of Maryland or elsewhere, as the board of directors
or the executive committee thereof may direct; and every trust com-
pany 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 com-
panies 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 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 Mary-
land, 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
required to be kept by such trust company.

1910, ch. 219, sec. "62 (p. 28).

63. Whenever the reserves of any bank or trust company shall fall
below the amount required herein to be kept, such bank or trust com-
pany shall not increase its loans or discounts, otherwise than by dis-
counting 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 reserve, the Bank Commissioner may
notify the Governor, and he may direct the Attorney-General to insti-
tute proceedings for the appointment of a receiver or to wind up the
business of such bank or trust company.

1910. ch. 219, sec. 63 (p. 28).

64. The total liabilities of any person, copartnership or corpora-
tion, to any bank or trust company for money borrowed, after April
8, 1910, including in the liabilities of the copartnership 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,
copartnership 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.