HERBERT R. O'CONOR, GOVERNOR. 949
CHAPTER 697.

(House Bill 526)

AN ACT to add two new sections to Article 2 of the Code of
Public Local Laws. of Maryland (1930 Edition), title "Anne
Arundel County", sub-title "Justices of the Peace and Con-
stables", said new section to be known as Sections 353A and
353B, and to follow immediately after Section 353 of said
Article, relating to the transmission of papers in preliminary
hearings and appeals of criminal cases from and before Trial
Magistrates in Anne Arundel County.

(Vetoed. )

CHAPTER 698.
(House Bill 528)

AN ACT to add a new section to Article 48A of Flack's Anno-
tated Code of Maryland (1939 Edition), title "Insurance",
sub-title "General Provisions", said new section to follow
immediately after Section 25A of said Article, and to be
known as Section 25B, prohibiting loans to and guarantees
of financial obligations of any director or executive officer
of Stock Insurance Companies, Mutual Insurance Com-
panies, Reciprocal Exchanges, Lloyds Associations, Inter-
Insurers, Non-Profit Hospitalization Plan Corporations, and
Fraternal Beneficial Associations.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be, and the same is hereby added to
Article 48A of Flack's Annotated Code of Maryland (1939
Edition), title "Insurance", sub-title "General Provisions", to
follow immediately after Section 25A and to be known as
Section 25B, and to read as follows:

25B. DIRECTORS AND EXECUTIVE OFFICERS. (1) As used in
this section, the phrase "insurance company" includes stock
and mutual companies, reciprocal exchanges or inter-insurers,
Lloyds Associations, non-profit hospitalization plan corpora-
tions, and fraternal beneficial associations.

(2) No insurance company authorized to do business in this
State shall, except as provided in Sub-section (4), make any
loan to any director or executive officer of such insurance
company, either directly or indirectly, or through its sub-
sidiaries except on a bona fide mortgage on the residence for
his habitation of such officer or director, which mortgage loan