ALBERT C. RITCHIE, GOVERNOR. 1007

it may be located, and for branches in cities, towns or vil-
lages in which it proposes to establish branches; provided,
however, that no branch shall hereafter be established by
any trust company, in the city, town or village where said
trust company is now located and engaged in business,
until said trust company conforms to the requirements
herein provided as to the minimum amount of surplus and
capital stock for a trust company in said city, town or
village.

SEC. 3. And be it further enacted, That Sections 70
and 71 of Article 11 of the Annotated Code of Public Gen-
eral Laws of Maryland, entitled "Banks and Trust Com-
panies, " sub-title "General Regulations, " be, and the same
are hereby repealed and re-enacted, with amendments, so
as to read as follows:

70. The Board of Directors of a bank or trust company
may declare a dividend from so much of its net profits or
from its surplus in excess of twenty per cent. (20%) of its
required capital, after providing for expenses, losses,
interest and taxes accrued or due from said bank or trust
company, as they shall deem expedient. Any losses sus-
tained in excess of any undivided profits may be
charged to its surplus account; provided, that its surplus
fund, if at any time below twenty per cent. (20%) of the
required capital, shall thereafter be reimbursed from its
net earnings, and no dividends shall be declared or paid in
excess of one-half of its net earnings, unless or until its
surplus fund shall be fully restored to the amount of
twenty per cent. (20%) of its capital as required by the
provisions of this Article. For the purposes of this section
the term "bank" shall include savings institutions having a
capital stock.

71. No dividend shall be declared or paid by the direc-
tors except out of the net profits or surplus in excess of its
required capital properly applicable thereto, as provided in
Section 70 of this Article, and if any such dividend shall be
paid, every stockholder receiving the same shall be liable to
restore the full amount thereof, unless the capital and the
surplus to the extent required by Section 70 is subsequently
made good; and if the directors shall knowingly pay any
dividend when the corporation is insolvent or in danger
of insolvency, or not having reason to believe that there
were sufficient net profits or surplus properly applicable
thereto to pay the same without impairing or diminishing