740 LAWS OF MARYLAND. [CH. 309

in the manner, including payment of the same recording fees,
prescribed in Section 25 of this Article with respect to articles
of amendment. A duly certified copy of such articles supple-
mentary from the records of the State Tax Commission or the
Circuit or Superior Court shall be evidence of the classifica-
tion so fixed or altered and therein set forth.

SEC. 4. And be it further enacted, That a new and additional
section be and the same is hereby added to Article 23 of the
Annotated Code, to be known as Section 35D 1/2, and to follow
Section 35D thereof, said new and additional section to read
as follows:

35D 1/2. For the purposes of Sections 35 to 35D, inclusive,
of this Article the consideration for which stock is issued as
a stock dividend shall be taken to be the capitalization thereby
of surplus or net profits of the corporation, and the actual
value of such consideration shall be taken to be an amount
equal to the surplus or net profits thereby capitalized.

SEC. 5. And be it further enacted, That Section 36A of
Article 23 of the Annotated Code be and the same is hereby
repealed and re-enacted with amendments so as to read as fol-
lows:

36 A. (1) Any corporation of this State may acquire shares
of its own stock of any class by gift or bequest.

(2) Any such corporation may purchase shares of its own
stock of any class, which is subject to redemption at the time
of such purchase, at not exceeding the redemption price there-
of. Any of such stock purchased for retirement and any of
such stock redeemed shall have the status of authorized but
unissued stock of the corporation and, until the classification
thereof shall have been changed, shall retain the classification
obtaining before such purchase for retirement or such redemp-
tion. No proceeding for the reduction of the issued stock of the
corporation shall be necessary to effectuate such retirement.
For the purposes of the succeeding paragraphs of this section
every purchase for retirement of shares of stock subject to re-
demption shall be deemed and taken to be a redemption thereof
and the term "purchase" whenever used therein shall be con-
strued not to include either any purchase for retirement of
shares of stock subject to redemption or any redemption there-
of.

(3) Any such corporation thereunto authorized by its char-
ter or by the vote, at a meeting duly called and held, of the