ALBERT C. RITCHIE, GOVERNOR. 461
CHAPTER 255.

AN ACT to repeal and re-enact, with amendments, Section
71H of Article 11 of the Code of Public General Laws
of Maryland, entitled "Banks and Trust Companies, "
sub-title "General Regulations, " as enacted by Chapter
46 of the Acts of the General Assembly of 1933, so as to
permit the State or any political sub-division or agency
thereof, to exercise its rights against any collateral se-
curity held for a deposit or other claim.

SECTION 1. Be it enacted by the General Assembly of
Maryland, That Section 71H of Article 11 of the Code of
Public General Laws of Maryland, entitled "Banks and
Trust Companies, " sub-title "General Regulations, " as en-
acted by Chapter 46 of the Acts of the General Assembly
of 1933, be, and the same is hereby repealed and re-en-
acted, with amendments, so as to read as follows:

71H. No suspension of remedies or extension of time
for payment and no other provision affecting deposits of,
or obligations to the State or any political sub-division or
agency thereof, which are secured by a surety bond, shall
be effective unless and until such surety shall have executed
an agreement in writing in form and terms satisfactory to
the official authorized to accept and/or approve depository
bonds for the State, such sub-division or agency, as the
case may be, providing that such suspension, extension
and/or other provisions shall not release or impair the
obligation of such surety, and providing further that such
obligation shall be enforceable only on demand made after
default occurring upon or after the extended date of such
obligation, as fully as upon default at the time originally
provided. Upon the filing of such agreement by the surety
all liability of such surety as to future deposits of the State,
or any political sub-division or agency thereof, as the case
may be, shall cease.

Provided, further, that the holder of a surety bond guar-
anteeing deposits in any banking institution in this State,
including, but not limited to, deposits or obligations due to
the State or any political sub-division or agency thereof,
shall not demand of or be entitled to receive from the
surety or sureties thereof, payment of such bond at a rate
faster than the deposit guaranteed thereby shall be pay-
able by such banking institution, but the holder of such
surety bond shall be entitled to demand and receive from