1020 LAWS OF MARYLAND. [CH. 479
CHAPTER 479.

AN ACT to repeal and re-enact, with amendments, Section
116 of Article 11 of the Annotated Code of Public General
Laws of Maryland, 1929 Supplement, title "Banks and
Trust Companies, " sub-title "Credit Union. "

SECTION 1. Be it enacted by the General Assembly of
Maryland, That Section 116 of Article 11 of the Annotated
Code of Public General Laws of Maryland, 1929 Supplement,
title "Banks and Trust Companies, " sub-title "Credit
Union, " be, and the same is hereby repealed and re-enacted,
with amendments, to read as follows:

116. A credit union may loan to its members for such
purposes and upon such security and terms as the by-laws
shall provide and credit committee may approve, except
mortgages secured by loans on real or leasehold property,
but security need not be taken for any loan of fifty
dollars ($50. 00) or less, or for the sum of fifty dollars
($50. 00) in any case where the loan is in excess of said
amount. An endorsed note or the assignments of shares in
any credit union, may be deemed security by the credit
committees within the meaning of this sub-title. A member
who needs funds with which to purchase necessary supplies
for growing crops may receive a loan in fixed monthly in-
stallments instead of one sum. No member of the board of
directors, credit committee or of the supervisory committee
shall either directly or indirectly, borrow from or become
surety for a loan or advance made by the corporation, in
excess of the total of his shares and deposit in said union,
unless said loan shall have been approved at a regularly
called meeting of the members of the corporation by a
majority vote of those present and represented at said
meeting and unless the call for the meeting contained notice
of the fact that such loan would be discussed at said
meeting.

All officers and members of committee in any way know-
ingly permitted or participating in making a loan of funds
of a credit union to a non-member thereof shall be guilty of
a misdemeanor. The credit union shall have the right to
recover the amount of said illegal loans from the borrower
or from any officer or member of committees who know-
ingly permitted or participated in the making thereof, or
from them all jointly. The supervisory committee shall ap-
point a substitute to act on the credit committee in the place
of any member, in case such member makes application to