HERBERT R. O'CONOR, GOVERNOR. 1727
CHAPTER 989.
(Senate Bill 612)

AN ACT to repeal and re-enact, with amendments, Section
195 of Article 16 of the Annotated Code of Maryland
(1939 Edition), title "Chancery, " sub-title "Pleadings,
Practice and Process, " relating to costs and security
for expenses in chancery cases.

SECTION 1. Be it enacted by the General Assembly of Maryland,
That Section 195 of Article 16 of the Annotated Code of,
Maryland (1939 Edition), title "Chancery, " sub-title
"Pleadings, Practice and Process, " be and it is hereby
repealed and re-enacted, with amendments, to read as
follows:

195. In all cases in chancery, a rule security for costs
may be laid at any time before a final decree is passed,
by any defendant, against a plaintiff, non-resident at the
time of filing the bill, or becoming so after the filing thereof.

In any action instituted or maintained in the right of any
foreign or domestic corporation by the holder or holders
of less than five per centum of the outstanding shares of
any class of such corporation's stock or voting trust cer-
tificates, unless the shares or voting trust certificates held
by such holde or holders have a market value in excess of
twenty-five thousand dollars, the corporation in whose
right such action is brought shall be entitled at any stage
of the proceedings before final judgment to require the
plaintiff or plaintiffs to give -security for the reasonable
expenses, excluding attorney's fees, which may be incurred
by it in connection with such action, and which may be
incurred by the other parties defendant in connection
therewith for which it may in anywise become legally
liable, to which the corporation shall have recourse in such
amount as the court having jurisdiction shall determine
upon the termination of such action. The amount of such
security may thereafter from time to time be increased or
decreased in the discretion of the court having jurisdiction
of such action upon showing that the security provided
has or may become inadequate or is excessive.

SEC. 2. And be it further enacted, That this Act shall
take effect June 1, 1945.

Approved May 4, 1945.