BANKS AND TRUST COMPANIES. 159

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 saving's bank in the State.

1929, ch. 337, sec. 17. 1935, ch. 479.

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 lease-
hold property, but security need not be taken for any loan of fifty
dollars ($50.00) or less, or for the sum of fifty dollars ($50.00) in any
case where the loan is in excess of said amount. An endorsed note or
the assignments of shares in any credit union, may be deemed security
by the credit committees within the meaning 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 super-
visory committee shall either directly or indirectly, borrow from or be-
come 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 meeting of the members of the
corporation by a majority vote of thoses present and represented at said
meeting and unless the call for the meeting contained notice of the fact
that such loan would be discussed at said meeting.

All officers and members of committee in any way knowingly permitted¹
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 bor-
rower or from any officer or member of committees who knowingly per-
mitted 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 applica-
tion 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.