HERBERT B-. O'CONOR, GOVERNOR. 293

not on hand, after deducting all debts and claims against it,
exclusive of capital stock, an amount of assets of the char-
acter authorized by this Article equal in value to fifty per cent,
of the statutory minimum surplus required by this Article to
qualify to begin business, after charging against said company
all debts, legal reserves and other liabilities, it shall be the
duty of the Commissioner to publish the fact that the existing
condition of the affairs of such company is below the legal
standard of solvency established by this State, and he shall
require the company at once to cease doing new business and
cause a rigid examination in regard to all of the affairs of such
company. If it shall thereupon appear that said company is in
such condition as to fall below the legal standard of solvency
established by this Article, the Commissioner shall not permit
said company to continue in control of its business, and it shall
be his duty to at once institute the necessary proceedings in
accordance with the provisions of this Article for the protec-
tion of its policyholders, and to publish the results of the ex-
amination of such company whenever he may deem it for the
interest of the public to do so; provided, however, that in case
it shall appear that there is no fraud, gross incompetency or
recklessness in the management of said company, he may allow
said company ninety days from the time of the completion of
said examination within which to re-establish its statutory
minimum surplus, before instituting proceedings as herein
provided. Provided that any company having a capital and
surplus, if any, authorized or required by the law applicable to
such company at the time it was first licensed to do business in
this State, may not be proceeded against under the provisions
of this Act so long as its statutory surplus, if any, at the time
it was first so licensed shall remain unimpaired to the extent
of 50%, or if without any statutory surplus at the time it was
first licensed as aforesaid, so long as its statutory capital at
the time it was so licensed shall remain unimpaired.

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

Approved March 24, 1945.

CHAPTER 331.
(House Bill 50)

AN ACT to repeal and re-enact, with amendments, Sub-section
(j) of Section 2 of Article 88B of the Annotated Code of
Maryland (1939 Edition), title "State Police", eliminating