BANKS AND TRUST COMPANIES 425

provided therein. Such capital notes, debentures, bonds or certificates
of beneficial interest shall be subordinated to the claims of depositors
and/or creditors, but they shall be preferred to the claims of stockholders
in the event of liquidation. Such capital notes, debentures, bonds or cer-
tificates of beneficial interest may have voting rights similar to those
provided in Section 69 with respect to preferred stock, but they shall in
no case be subject to the liability imposed upon stockholders under the
Constitution and Laws of Maryland.

The capital stock of any banking institution which shall have issued
such capital notes or debentures shall not be deemed to be impaired.
within Section 10 of this Article when the amount of such capital notes
and debentures as represented by cash or sound assets exceeds the impair-
ment as found by the Bank Commissioner. Before any such capital notes
or debentures are retired or paid by the bank any existing .deficiency of its
capital (disregarding the notes or debentures to be retired) must be paid
in cash, to the end that the sound capital assets shall at least equal the
capital stock of the bank.

Capital notes, debentures, bonds or certificates of beneficial interest
which are deferred as to payment to the claims of depositors and/or
creditors (excepting stockholders) shall be considered as part of the capital
structure of a banking institution particularly within the meaning of
Sections 29, 54 (relating to minimum capital stock requirements) and
91 of this Article, but shall not be included in Sections 35 and 61 of this
Article relating to ownership of capital stock by a director.¹

An. Code, 1924, sec. 55. 1912, sec. 55. 1910, ch. 219, sec. 54 (p. 24). 1935, ch. 598.

1939, ch. 311.

71. A bank or trust company may purchase, hold and convey real
estate for the following purposes only:

First. Such as shall be necessary for the convenient transaction of its
business, including, with its banking offices, other apartments in the same
building, or on adjoining land, to rent as a source of income; provided,
however, that not more than fifty (50%) per cent of its unimpaired capi-
tal and surplus may be invested in its banking building, offices, furniture,
and fixtures by any bank or trust company; but in any institutions wherein
the aforesaid limitation has been reached, the Bank Commissioner may
authorize such ordinary repairs, replacements to furniture and fixtures,
and other structural improvements, as in his opinion are necessary for the
proper continuance of its banking business, under such conditions as the
Bank Commissioner may prescribe.

Second. Such as shall be conveyed to it in satisfaction of debts previ-
ously contracted in the course of its business.

Third. Such as it shall purchase at sale on judgments, decrees or mort-
gage foreclosures under securities held by it, but a bank shall not bid at
such sale a larger amount than is necessary to satisfy its debts and costs.

Fourth. No real estate acquired in the cases contemplated in the second
and third subdivisions preceding shall be held for a longer time than ten
years, except when an extension is granted by the Bank Commissioner.
If such extension be not granted, it must be sold at a private or public sale
within one year thereafter. Nothing in this section shall be construed as
preventing a bank or trust company from loaning moneys upon real estate

¹ Sec. 2 of ch. 485, acts of 1933, repealed all laws inconsistent therewith to extent of
inconsistency.