760

LAWS OF MARYLAND.

for whom its engagements are held, and the expenses of such

investigation, certified by such court to be just and reasonable,

shall be defrayed by this company, or such court may if deemed

necessary, examine the officers of. this company under oath or

affirmation as to the security aforesaid.

SEC. 8. And be it enacted, That this company shall keep all

trust funds and investments separate and apart from its own

Trust de-

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

partment

liabilities of this company; and for the purpose of securing the
observance of this section, this company shall have a trust depart-

ment in which all business authorized by the first and second sub-

sections of section three 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 investment's or assets shall belong shall be clearly

shown.

SEC. 9. 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, in the next preceding section,

and the said trust guarantee fund shall be absolutely pledged for

Guaranty

the faithful performance by this company of all its duties and

fund

undertakings which it is empowered under its original charter

and this act to accept, and shall be applied to make good any

default in such performance, and such pledge and liabilty shall

not in any respect deprive those of the creditors of this company,

whose security it is the intention of this section to increase, of

the performance given to them by the fifth 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 has any trust undertakings outstanding incom-

plete, but its income, if not needed at any dividend time to make

good such undertakings, may be added to and disposed of with

the general income of the company.

SEC. 10. And be it enacted, That no loan shall be made by this

company to any director, officer or employee thereof; and any

director or directors or other person or persons connected with

Not loan to
employee

this company, making or consenting to such loan, directly or
indirectly, or knowing that any such loan is made, and failing to

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, in-

cluding counsel fees, incident to collecting the same.

SEC. 11. And be it enacted, That it shall be the duty of the

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