J. MILLARD TAWES, Governor                      499

guards as are now or shall hereafter be applicable or permitted under
Federal Law to any National Banking Association, provided, how-
ever, that this power shall only become available to the State banks
and trust companies of this State by a special order of the Bank
Commissioner with the advice and counsel of the Banking Board and
then only if they deem it is reasonably required to preserve and
protect the welfare of such institutions and the general economy of
this State.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1963.

Approved April 17, 1963.

CHAPTER 294
(Senate Bill 372)

AN ACT to repeal and re-enact, with amendments, Section 150 of
Article 23 of the Annotated Code of Maryland (1962 Supple-
ment), title "Corporations", sub-title "Building or Homestead
Associations", to permit building and loan associations to invest
in bonds of the political subdivisions of the State guaranteed by
the political subdivisions.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 150 of Article 23 of the Annotated Code of Maryland
(1962 Supplement), title "Corporations", sub-title "Building or
Homestead Associations", be and it is hereby repealed and re-en-
acted, with amendments, to read as follows:

150.

The payment of the unpaid installments and the premiums on the
share or shares so purchased or redeemed, with interest on the
money paid therefor, as aforesaid, and all fines and penalties in-
curred in respect thereof by any member, shall be secured to such
corporation, by mortgage on real or leasehold property, or by the
hypothecation of stock of such corporation held by such member or
by judgment of a court of law or by a justice of the peace or by a
decree of a court of equity all as may be provided in the articles of
association or bylaws; but in no case of hypothecation of stock no
greater sum of money shall at any time be drawn out by any mem-
ber than shall have been already paid in by him on all his shares at
the time of said hypothecation, and all homestead or building asso-
ciations organized under the laws of this State are hereby prohibited
from investing in any other manner than in cash, fixtures, or loans
on hypothecated stock of such associations, judgments or decrees
for payment of money received by courts in this State, mortgages
on real or leasehold estate situate in this State, ground rents issuing
from real estate located in this State, bonds of this State and bonds
of any county, city or municipal corporation or other political sub-

division of the State, which are guaranteed by the county, city or

municipal corporation or other political subdivision as to principal
and/or interest, and bonds or other obligations of, or guaranteed as
, OF ANY COUNTY OR BALTIMORE CITY, OR BONDS WHICH