616                                LAWS OF MARYLAND                        [CH. 377

of the board has a direct financial interest; or (4) the making of a
contract for the purpose of composing threatened or actual litigation
undertaken between the board and one of its members, or between
the board and a firm, corporation, or association in which a member
of the board has a direct financial interest. If, through disqualifi-
cations, less than a quorum of the board is capable of participating
in any of the contracts or purchases permitted hereunder, the re-
maining member or members shall constitute a quorum and have the
authority to complete the contract or purchase, provided such action
shall have been previously approved in writing by the State Super-
intendent of Schools.

(b)  It is unlawful for any county school superintendent in any
county of Maryland to have a direct financial interest in any contract
or purchase to which the board of education in that county is a
party, except as in this sub-section set forth. Every county school
superintendent who may reasonably be expected to know, or who
knows that he has a direct financial interest in any contract or
purchase in which the board of education in that county is or may
be in any way concerned, shall make prompt disclosure of the fact
of such interest to the State Superintendent of Schools. It is unlawful
for any such county school superintendent to fail to disclose the fact
of such interest to said board. If such disclosure is made and if the
county school superintendent disqualifies himself from acting on
the transaction on behalf of such board, the transaction may be
completed if it involves (1) the making of a deposit by the board in
a bank in which he has a direct financial interest; or (2) the pur-
chasing of gas, electricity or other public utility services from a
company in which he has a direct financial interest; or (8) the
making of a contract after publicly advertised competitive bidding
with a firm, corporation or association in which he has a direct
financial interest; or (4) the making of a contract for the purpose
of composing threatened or actual litigation undertaken between
the board and the county school superintendent, provided such action
shall have been previously approved in writing by the State Super-
intendent of Schools.

(c)  For the purpose of this section, a person shall be deemed
to have a direct financial interest in a contract or purchase to which
the board of education of any county is a party, if such contract or
purchase is to be consummated between the board and such person
himself, or his spouse or child, or between the board and any firm,
corporation, or association in which he or his spouse or child either
jointly or severally own in total more than three per cent, or more
than $50,000.00 worth of the invested capital or capital stock, or
from which such person or his spouse or child, either jointly or
severally, are receiving total combined wages, salaries or bonuses
of more than an average of $5,000.00 per year over the three pre-
ceding years.

(d)   When any contract or purchase is entered into by any county
board of education of this state and a conflict of interest exists
contrary to the provisions of this section, such contract or purchase
may be set aside in a suit brought on behalf of such board by its
counsel or by the Attorney General of Maryland, unless the court
finds that such contract or purchase is in the public interest; and
the burden of proof shall be upon the party seeking to uphold such
contract or purchase to show that such contract or purchase is in