366 LAWS OF MARYLAND [CH. 107

420.

(a) Each member shall lend funds to such corporation as and
when called upon to do so, but except as hereinafter permitted the
total amount on loan by any member at any one time shall not exceed
the following limit to be determined as of the time it became a
member, and such amount shall thereafter be readjusted annually
in the event of any change in the base of the loan limit of such
member: National banking associations, State-chartered commercial
banks and trust companies, two per cent of capital and surplus;
savings banks, two per cent of the guarantee fund and undivided
surplus; [savings and loan associations, two per cent of guaranty
funds; stock insurance companies, two per cent of capital and sur-
plus; surety and casualty companies, two per cent of capital and
surplus; mutual insurance companies, two per cent of guaranty
funds or of surplus, whichever is applicable; and comparable limits
for other banking, lending and insurance organizations or other
commercial institutions as established by the board of directors; ]
provided, however, that except as hereinafter permitted the total
amount on loan by any member at any time shall not exceed two
hundred fifty thousand dollars. All loan limits shall be established at
the thousand dollar nearest to the amount computed on an actual
basis. All calls of funds which members are committed to lend to
such corporation shall be prorated by such corporation among the
members in the same proportion that the maximum loan limit of
each bears to the aggregate loan limits of all members of such
corporation. Notwithstanding any other provisions of this sub-section
any member may lend funds to the corporation in excess of the loan
limit for such corporation as above provided.

Notwithstanding the provisions of any other law, general or
special, the notes or other interest-bearing obligations of such cor-
poration, issued in accordance with and by virtue of this sub-title
and the bylaws of such corporation, shall be legal investments for
the [banking, insurance and surety organizations] financial institu-
tions which become members of such corporation [, up to but in no
event exceeding the loan limits established herein].

(b) All loans to the corporation by members shall be evidenced by
bonds, debentures, notes or other evidences of indebtedness of the
corporation, which shall be freely transferable at all times [, and
which shall bear interest at a rate of not less than one quarter
of one per cent in excess of the rate of interest determined by the
board of directors to be the prime rate prevailing at the date of
issuance thereof in the City of Baltimore on unsecured commercial
loans].

422.

Notwithstanding any rule at common law or any provision of any
general or special law:

(1) All domestic corporations organized for the purpose of carry-
ing on business within this State, without limitation, are hereby
authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge or otherwise dispose of any bonds, securities or other evidences
of indebtedness created by, or the shares of the capital stock of,
the corporation, and while owners of said stock to exercise all the