BANKS AND TRUST COMPANIES 429

Maryland. Every trust company shall keep on hand at all times a reserve
of at least 10 per cent of its deposits payable on demand (not including
thereunder, however, any deposits made by the City of Baltimore and
secured by the counter deposits of Baltimore City stock) ; which reserve
shall be kept on deposit in such bank or banks, or trust company or trust
companies of good standing, either in the State of Maryland or else-
where, as the board of directors or executive committee may direct; and
every trust company shall also keep on hand, as an additional reserve,
at least 5 per cent of the amount of such deposits, which additional reserve
may be kept on deposit in such bank or banks or trust company or trust
companies as the board of directors or executive committee thereof may
direct, or in the form of registered or coupon bonds or public stock of
the United States, or the State of Maryland, or of Baltimore City, or of
the bonds of any county or municipal corporation of this State, which shall
be approved by the Bank Commissioner. Every trust company shall also
keep on hand at all times a reserve of at least three per cent (3%) of their
time deposits; which reserve may be kept as cash on hand, or on deposit
in such bank or banks, or trust company or trust companies of the State
of Maryland, or elsewhere, of good standing, as the board of directors
or executive committee by resolution may direct, or in the form of direct
obligations of the United States Government, or the State of Maryland.
Cash items shall not be considered as a part of the reserve herein required
to be kept by either banks or trust companies, but cash actually on hand
held by a trust company shall be considered as a part of the reserve herein
first required to be kept by such trust company.

Cited in holding that trustee, who was president of trust company in which trust
fund was deposited, had sufficient knowledge of financial situation to make him liable
for loss of trust fund by his failure to remove it and convert it into safer investment.
Zimmerman v. Coblentz, 170 Md. 483.

An. Code, 1924, sec. 63. 1912, sec. 62A. 1914, ch. 805, sec. 61A. 1931, ch. 294, sec. 63.

79. No bank or trust company shall carry without the approval of the
Bank Commissioner for a longer period than ninety days bills payable or
rediscounts in an aggregate amount greater than its paid in capital and
surplus. The period of ninety days herein specified may be extended with
the written authority of the Bank Commissioner.

An. Code, 1924, sec. 63A. 1933, ch. 579.

80. No bank or trust company shall hereafter make any loan or
discount on the security of the shares of its own capital stock, nor be the
purchaser or holder of any such shares, unless such security or purchase
shall be necessary to prevent loss upon a debt previously contracted in
good faith; and the stock so purchased or acquired shall, within twelve
months from the time of its purchase or acquisition, unless the time be
further extended by the Bank Commissioner, be sold or disposed, of at
public or private sale; or, in default thereof, the said bank or trust com-
pany shall be regarded as conducting its business in an unauthorized
manner, and the Bank Commissioner may take possession of any such
institution as receiver in the manner provided by Section 12 of this
Article; provided, however, that nothing contained in this section shall
apply to any shares of capital stock pledged to any bank or trust company
prior to April 21, 1933. For the purposes of this section the term "bank"
shall include savings institutions having a capital stock.