BANKS AND TRUST COMPANIES 449

An. Code, 1924, sec. 115. 1929, ch. 337, sec. 16.

141. 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.

An. Code, 1924, sec. 116. 1929, ch. 337, sec. 17. 1935, ch. 479. 1937, ch. 178, sec. 116.

142. A credit union may loan to it? members for such purposes, and
upon such security and terms as the by-laws shall provide, and the credit
committee may approve, 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 a confessed judgment note signed by the owner of
unencumbered real or leasehold property, not to exceed three hundred
dollars ($300.00) or the assignment of shares and deposits in the credit
union may be deemed security by the credit committee within the meaning
of this sub-title. No member of the board of directors, credit committee
or the supervisory committee shall directly or indirectly borrow from or
become security for a loan or advance made by the corporation, in excess
of the total of his shares and deposit, or in excess of the total of paid in
shares and deposit held by him and his co-makers in said credit union,
unless said loan shall have been approved at a regularly called meeting of
the membership of the corporation by a majority vote of those 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 committees who in any way knowingly per-
mitted or participated in making a loan of funds of a credit union to a non-
member thereof shall be guilty xof 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 super-
visory committee shall appoint a substitute to act on the credit committee
in the place of any member, in case such member makes application to bor-
row money from the credit union or to become surety for any other member,
whose application for a loan is under consideration. A borrower may re-
pay the whole or any part of this loan on any day on which the office of
the corporation is open for business.

An. Code, 1924, sec. 117. 1929, ch. 337, sec. 18.

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

An. Code, 1924, sec. 118. 1929, ch. 337, sec. 19.

144. 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
of the net income of the corporation which has accumulated during the
year. This amount may be increased by vote of the members on recom-
mendation of the directors. The reserve fund shall belong to the corpo-
ration and shall be held to meet contingencies, and shall not be distrib-
uted to members, except upon dissolution of the corporation.
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