ART. 23] LIABILITY OF STOCKHOLDERS 561

sixty days from said April 6, 1908, become a party or parties
to a bill in equity of the character mentioned in this section, then,
as regards the operation of the statute of limitations upon the
claims so sued on, the time elapsed between the institution of said
abated suits and the time of such plaintiff or plaintiffs becoming a party
or parties to said bill in equity, shall be included in ascertaining the
period within which suits are required to be brought by the said statute
of limitations, the costs taxable to any plaintiff or plaintiffs in any
action at law which shall be abated under the provisions of this section,
the plaintiff or plaintiffs in which action shall become a party or parties
to a bill in equity under the provisions of this section, shall become a
part of the costs taxable in the proceedings in said equity case.*

The portion of this section changing the creditor's remedy against stock-
holders and providing for the abatement of pending suits, is not Invalid under
the federal constitution, the remedy provided by this section being more
effective than that provided by the prior law. Suits to enforce rights exist-
ing on June 1, 1908, held, in view of section 104, not to be affected by the
act of 1908, ch. 240 (the new corporation law). Pittsburg Steel Co. v. Balti-
more Equitable Society, 113 Md. 79 (pending on appeal in the United States
supreme court); Bettendorf Axle Co. v. Field, 114 Md. 487.
See notes to sec. 117.

1904, art. 23, sec. 72. 1888, art. 23, sec. 64. 1868, ch. 471, sec. 59. 1872, ch. 325.

1908, ch. 240, sec. 41.

66. Every stockholder of any corporation of this State, in case of a
reduction of its capital stock, as provided for in section 27 of this
article, shall be liable to the corporation or its receiver for the payment
of its liabilities existing at the time of such reduction, to the extent
of the amount withdrawn and paid to such stockholder, and (except
stockholders in banking corporations and those classes of corporations
for which special provision is hereinafter made in this article) every
stockholder of any corporation in this State shall remain liable for the
benefit of its creditors for the amount of the face value of his stock,
or of his subscription in case the stock has not been issued, less the
amount he shall already have paid thereon, until he shall have paid said
amount in good faith; and in the event of the insolvency of the corpora-
tion, such liability shall be considered as an asset of the corporation
and may be enforced by the receiver, trustee or other person wind-
ing up the affairs of said corporation, notwithstanding any release,
agreement or arrangement short of actual payment which may have
been made between said corporations and said stockholder.

Trust fund.

Unpaid subscriptions to the stock of a corporation constitute a trust fund
for the benefit of general creditors of the corporation, which cannot be
defeated or Impaired by any device short of actual payment in good faith.
Crawford v. Rohrer, 59 Md. 604. And see Md. Trust Co. v. Mechanics' Bant,
102 Md. 625; Basshor v. Dressel, 34 Md. 508.

If property, in payment for which stock is issued under section 35, is taken
at a grossly exaggerated valuation, it may not protect the holder against
liability under this section. Tompkins v. Sperry, etc., Co., 96 Md. 580;
Basshor v. Dressel, 34 Md. 508.

*See foot-note, p. 560.
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