BANKS AND TRUST COMPANIES. 55

1929, ch. 337, sec. 16.

115. Any capital, deposits or surplus of a credit union, in excess of
the amount for which loans to members shall be approved by the credit
committee, may be deposited in savings banks or trust companies, organ-
ized under the laws of Maryland, or in national banks located therein
or may be invested in any investments legal for savings bank in the State.

1929, ch. 337, sec. 17.

116. A credit union may loan to its members for such purposes and
upon such security and terms as the by-laws shall provide and credit
committee may approve, except mortgages secured by loans on real or
leasehold property, but security must be taken for any loan in excess of
fifty dollars. An endorsed note or the assignments of shares in any credit
union, may be deemed security by the credit committees within the mean-
ing of this sub-title. A member who needs funds with which to purchase
necessary supplies for growing crops may receive a loan in fixed monthly
installments instead of one sum. No member of the board of directors,
credit committee or of the supervisory committee shall either directly or
indirectly, borrow from or become surety for a loan or advance made by
the corporation, in excess of the total of his shares and deposit in said
union, unless said loan shall have been approved at a regularly called meet-
ing of the members of the corporation by a majority vote of those present
and represented at said meeting and unless the call for the meeting con-
tained notice of the fact that such loan would be discussed at said meeting.

All officers and members of committee in any way knowingly per-
mitted¹ or participating in making a loan of funds of a credit union to a
non-member thereof shall be guilty of a misdemeanor. The credit union
shall have the right to recover the amount of said illegal loans from the
borrower or from any officer or member of committees who knowingly
permitted or participated in the making thereof, or from them all jointly.
The supervisory committee shall appoint a substitute to act on the credit
committee in the place of any member, in case such member makes appli-
cation to borrow money from the credit union or to become surety for
any other member, whose application for a loan is under consideration.
A borrower may repay the whole or any part of this loan on any day on
which the office of the corporation is open for business.

1929, ch. 337, sec. 18.

117. No credit union shall charge interest at the rate which exceeds one
per cent, per month, on unpaid balances.

1929, ch. 337, sec. 19.

118. All entrance fees, transfer fees and fines shall, after the payment
of the organization expenses, to be known as reserve income, and shall
be added to the reserve fund of the corporation. At the close of each
fiscal year there shall, be set apart to the reserve fund twenty-five per cent.

¹ Evidently a typographical error.