340                             LAWS OF MARYLAND                      [CH. 126

(d) Such outstanding certificates shall be entitled to receive interest
at such rate as may be approved by the Commissioner from time to
time and may be repayable under such terms, and in such pro rata
installments, as the Commissioner may approve.

(e) At the close of each fiscal closing year each newly chartered mu-
tual savings institution shall transfer and credit to its guarantee fund
an amount not less than ten per cent (10%) of its net earnings before
interest. When said unimpaired guarantee fund reaches an amount
equal to at least five per cent (5%) on the whole amount of its de-
posits no further additions shall be required to be made to the guar-
antee fund except as provided in Sections 40, 42 and 43 of this
Article. Until the guarantee fund reaches the required minimum
herein set forth no payments shall be permitted to be made on the
deferred payment certificates by way of principal but the Commis-
sioner may permit interest to be paid on said certificates during this
period at such annual rate as he may approve.

41.

(a)    Every savings institution existing under the laws of the State
of Maryland, or which may hereafter be incorporated, transacting
strictly a savings bank business, shall be capable of receiving from
any person or persons, or bodies corporate or politic, any deposit of
money, which shall be invested or loaned out on good security, in the
discretion of the directors; provided, no part of the funds of such
corporation shall be loaned to any officer, director or employee there-
of. The deposits in any savings institution may be withdrawn at such
time and in such manner as its bylaws may permit, but such institu-
tion may at any time require a depositor to give a notice, not exceed-
ing ninety days, of his intention to withdraw the whole or any part
of his deposit.

(b)   Every such savings institution shall have the power to con-
struct, own and let for hire, vaults, safes and like receptacles for the
safekeeping and storage of securities and valuables, and to receive for
deposit securities or valuables upon such terms and conditions as
may be agreed upon between such institutions and persons, firms or
corporations desiring to rent said vaults, safes and like receptacles,
or to deposit securities or other valuables with said institutions.

(c)  Any mutual savings institution, by vote of its board of direc-
tors may borrow money for the purpose of repaying its depositors,
or for such other purposes as said board may deem to be in the best
interests of such institutions. Any borrowing made under the au-
thority of this section, shall be for periods aggregating not more than
one year, subject, however, to renewal for any unpaid balance after
such year with the written approval of the [Banking] Commissioner.
Except with the prior approval of the [Banking] Commissioner,
the aggregate amount of all borrowing outstanding at any one time
for purposes other than repaying its depositors, shall not exceed
five per cent of the deposits of such institution as shown by its books
at the time of such borrowing. Such institution may pledge its assets
as security for any sum borrowed under the authority of this section.
A copy of the resolution of the board of directors authorizing such
borrowing shall be forwarded forthwith to the [Banking] Commis-
sioner.