SURETIES 3349

An. Code, 1924, sec. 9. 1912, sec. 8A. 1916, ch. 115. 1933 (Special Sess.), ch. 110.

1935, ch. 492.

9. When the surety or sureties on the bond of any bank or trust com-
pany used as a depository for the funds of the State Treasurer shall notify
the Governor and the State Treasurer of their or its desire to be relieved
from further liability as such surety, as provided in the preceding section
of this article, or when any new bond shall be given by any bank or trust
company, that may be used as a depository for the funds of the State by
the State Treasurer, it shall be lawful for the State Treasurer to receive
from such bank or trust company, its bond, conditioned, as provided by law,
and, as surety collateral to the said bond, instead of the surety heretofore
provided by law, registered public stock and/or bonds of the United States
or of the State of Maryland or of Baltimore City or the bonds of any
county or municipal corporation of this State, or of the Home Owners'
Loan Corporation, a corporation created by an Act of the Congress of the
United States, approved June 13, 1933, which shall be approved by the
State Treasurer to the amount, in value, of the penalty of the bond, and
said amount shall be at all times maintained by said bank or trust com-
pany; which stock and/or bonds must be registered in the name of said
Treasurer, officially, as held in trust under and pursuant to this section
and the same shall be held by said Treasurer in trust to secure the per-
formance of the conditions of the said bond; provided, however, said
Treasurer may, in his discretion, accept as surety collateral any of said
stock and/or bonds in unregistered form upon such conditions as he may
prescribe with respect thereto. Any such bank or trust company that may
heretofore have given the bond, as heretofore provided by law, may at any
time secure the cancellation of said bond and the substitution of a bond with
such securities as are hereinbefore provided for, and any such bank or trust
company may at any time, withdraw from the State Treasurer such col-
lateral securities with the bond to which the securities are attached and
file, in lieu thereof, such bonds as have heretofore been accepted by the
State Treasurer; provided that no substitution of the bond with collateral
or a bond with other securities for the bond with collateral shall be made
oftener than once in each twelve months.

1933, ch. 237.

10. In the event of a default upon a bond of any bank or trust com-
pany, the stocks and bonds held as collateral, as provided in Section 9
hereof, shall be sold by the State Treasurer, at public or private sale, upon
the consent of the banking institution pledging the same or of the receiver
or other official in charge of the affairs of said bank at the best price ob-
tainable by him, and the purchaser of said stocks and bonds may pay for
the same either at the time of the transfer of said stocks and bonds or over
such period or periods of time and upon such terms as may be fixed by
the State Treasurer, and the State Treasurer, by and with the consent
of the Board of Public Works, is hereby empowered at any time after the
first payment on account to compromise or cancel any sum or sums re-
maining unpaid by the purchaser of said stocks and bonds so sold by the
State Treasurer.