HARRY W. NICE, GOVERNOR. 1037

section to be known as Section 55A and to follow immedi-
ately after Section 55 of said Article, providing that
banking institutions shall not be permitted to have affi-
liates or closely allied corporations.

SECTION 1. Be it enacted by the General Assembly of
Maryland, That a new section be and it is hereby added to
Article 11 of the Annotated Code of Maryland (1924 Edi-
tion), title "Banks and Trust Companies, " sub-title "Gen-
eral Regulations, " said new section to be known as Section
55A, to follow immediately after Section 55 of said Article,
and to read as follows:

55A. It shall be unlawful for any banking institution
doing business under this Article to have any affiliate, affili-
ates or closely allied corporation or corporations.

The terms "affiliate" and "closely allied corporation" as
used in this section sh^ll be construed to include any corpo-
ration, business, trust, association, or other similar organ-
ization which a banking institution controls by one of the
following methods:

(1) Owns or controls, directly or indirectly, either a
majority of the voting shares or more than 50 per centum
of the number of shares voted for the election of its direc-
tors, trustees, or other persons exercising similar functions
at the preceding election, or controls in any manner the
election of a majority of its directors, trustees or other
persons exercising similar functions; or

(2) Controls, directly or indirectly, through stock own-
ership or in any other manner, by the shareholders of such
banking institution who own or control either a majority
of the shares of such banking institution or more than 50
per centum of the number of shares voted for the election
of directors of such banking institution at the preceding
election, or by trustees for the benefit of the shareholders
of any such banking institution.

Provided, however, that nothing in this Act shall affect
or disturb any such affiliate or closely allied corporation
existing at the time of the passage of this Act, and pro-
vided further that a Banking Institution, for re-organiza-
tion purposes and with the consent of the Bank Commis-
sioner may create and have an affiliate or closely allied
corporation.

The Bank Commissioner shall have the same rights and
powers to examine into the affairs of all existing affiliates
and closely allied banking institutions as he has as to
banking institutions whenever he shall deem such exam-