HARRY W. NICE, GOVERNOR. 1075

54-B. Any banking institution may at any time, with
the approval of the Bank Commissioner, issue, sell or hy-
pothecate its capital notes, debentures, bonds or certificates
of beneficial interest, which may be payable upon such
terms, and may bear such rate of interest, if any, as may be
provided therein, Such capital notes, debentures, bonds or
certificates of beneficial interest shall be subordi-
nated to the claims of depositors and/or creditors, but they
shall be preferred to the claims of stockholders in the event
of liquidation. Such capital notes, debentures, bonds or
certificates of beneficial interest may have voting rights
similar to those provided in Section 54A with respect to
preferred stock, but they shall in no case be subject to the
liability imposed upon stockholders under the Constitution
and Laws of Maryland.

The capital stock of any banking institution which shall
have issued such capital notes or debentures shall not be
deemed to be impaired within Section 8 of this Article when
the amount of such capital notes and debentures as repre-
sented by cash or sound assets exceeds the impairment as
found by the Bank Commissioner. Before any such capital
notes or debentures are retired or paid by the bank any ex-
isting deficiency of its capital (disregarding the notes or
debentures to be retired) must be paid in cash, to the end
that the sound capital assets shall at least equal the capital
stock of the bank.

Capital notes, debentures, bonds or certificates of benefi-
cial interest which are deferred as to payment to the claims
of depositors and/or creditors (excepting stockholders)
shall be considered as part of the capital structure of a
banking institution particularly within the meaning of Sec-
tions 20, 42 (relating to minimum capital stock require-
ments) and 67 of this Article, but shall not be included in
Sections 26 and 50 of this Article relating to ownership of
capital stock by a director.

SEC. 2. And be it further enacted, That this Act shall
take effect June 1st, 1935.

Approved April 29, 1935.

CHAPTER 520.

AN ACT to repeal and re-enact, with amendments, Section
106 of Article 81 of the Code of Public General Laws of
Maryland, 1929 Edition, as re-enacted by Chapter 90 of