J. MILLARD TAWES, Governor 51

SECTION 1. Be it enacted by the General Assembly of Maryland,
That Section 72, of Article 11 of the Annotated Code of Maryland
(1957 Edition), title "Banks and Trust Companies", subtitle "Gen-
eral Regulations", be and it is hereby repealed and re-enacted, with
amendments, to read as follows:

72.

It shall be unlawful for any banking institution doing business
under this article to have any affiliate, affiliates or closely allied cor-
poration or corporations.

The terms "affiliate" and "closely allied corporation" as used in
this section shall be construed to include any corporation, business,
trust, association, or other similar organization which a banking in-
stitution controls by one of the following methods:

(1) Owns or controls, directly or indirectly, either a majority of
the voting shares or more than 50 per centum of the number of
shares voted for the election of its directors, trustees, or other persons
exercising similar functions at the preceding election, or controls in
any manner the election of a majority of its directors, trustees or
other persons exercising similar functions; or

(2) Controls, directly or indirectly, through stock ownership or
in any other manner, by the shareholders of such banking institution
who own or control either a majority of the shares of such banking
institution or more than 50 per centum of the number of shares voted
for the election of directors of such banking institution at the pre-
ceding election, or by trustees for the benefit of the shareholders of
any such banking institution.

Provided that this section shall not apply to the purchase of shares
of stock in a small business investment company as authorized by the
Small Business Investment Act of 1958 (Public Law 699, 85th Con-
gress 2nd Session, and Amendments thereto). Such shares shall be
eligible for purchase by any banking institution as defined in this
article; except that in no event shall any such institution hold shares
in any such company where the capitalized value of such shares on
the books of the institution exceed more than 2 per cent of its unim-
paired capital and surplus.

Provided, however, that nothing in this section shall affect or dis-
turb any such affiliate or closely allied corporation existing on June 1,
1935, and provided further that a banking institution, for reorgani-
zation purposes and with the consent of the Bank Commissioner may
create and have an affiliate or closely allied corporation.

The Bank Commissioner shall have the same rights and powers to
examine into the affairs of all existing affiliates and closely allied
banking institutions as he has as to banking institutions whenever
he shall deem such examination desirable or necessary, and for mak-
ing such examinations he shall charge the same fees as for examining
banking institutions.

SEC. 2. And be it further enacted, That this Act shall take effect
June 1, 1962.

Approved March 23, 1962.