594

LAWS OF MARYLAND.

assets, and such trust funds shall not be subject to the other

liabilities of this company, and for the purpose of securing the

Trust de-

observance of this section, this company shall have a trust de-

partment

partment in which all business authorized by the first and second

sub-sections of section six of this act shall be kept separate and

distinct from its general business; and all investments made by

it in any fiduciary capacity shall be so designated, that the trust

to which such investments or assets shall belong shall be clearly

shown.

SEC. 12. And be it enacted, That the directors of this company

may from time to time, set apart as a trust guarantee fund, such

portion of its profits as they may deem expedient, and the ac-

counts of the investment and management, and the securities in

which such trust guarantee fund is invested shall be kept in the

trust department provided for by the next preceding section; and

the said trust guarantee fund shall be absolutely pledged for the

faithful performance of this company of its duties and under-

takings, which it is empowered under its original charter and this

Trust
guarantee

act to accept, and shall be applied to make good any default in

fund.

such performance; and such pledge and liability shall not in any

respect deprive those of the creditors of this company, whose se-

curity it is the intention of this section to increase, of the prefer-

ence given to them by the eighth section hereof, but shall be in

addition thereto; and no portion of such trust guarantee fund

shall be transferred to the general stock of this company while it

lias any trust undertakings outstanding incompleted; but its in-

come, if not needed at any dividend time, to make good such nn-

dertakings, may be added to and disposed of with the general in-

come of the company.

SEC. 13. And be it enacted, That no loan shall be made by this

company to any director, officer or employee thereof, and any di-

rector or directors, or other person or persons connected with this

Not to
loan to em-

company, working or consenting to any such loan, directly or in-
directly, or knowing that any such loan is made, and failing to

ployees.

inform the board of directors thereof at its next meeting, after

obtaining such knowledge, shall be liable to this company for the

amount so loaned, with interest thereon, and all expenses, includ-

ing counsel fees, incident to collecting the same.

SEC. 14. And be it enacted, That it shall be the duty of the di-

rectors of this company, by a committee of not less than three of

their number at least twice in each year, to thoroughly examine

Committee

the books, vouchers and assets of this company and its affairs gen-

to examine

erally, and such committee may, if deem necessary, employ at the

expense of this company an expert accountant to aid it in making

such examination; and it shall be the duty of said committee, as

speedily as practicable, after any such examination has been com-

pleted, to prepare a statement snowing the assets and liabilities of