J. MILLARD TAWES, Governor                     1147

CHAPTER 750
(Senate Bill 131)

AN ACT to add new Section 108G to Article 11 of the Annotated
Code of Maryland (1957 Edition and 1964 Supplement), title
"Banks and Trust Companies", sub-heading "General Regula-
tions", to follow immediately after Section 108F thereof, to require
reports to the Bank Commissioner of certain transactions and
contemplated transactions affecting the voting stock of banks
and trust companies, and imposing a penalty for failure to make
required reports.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 108G be and it is hereby added to Article 11 of the
Annotated Code of Maryland (1957 Edition and 1964 Supplement),
title "Banks and Trust Companies", sub-heading "General Regula-
tions", to follow immediately after Section 108F thereof, and to read
as follows:

108G. (a) Whenever (1) a change occurs or is about to occur in
the outstanding voting stock of any State bank or trust company
which will result in a change in the control of the institution, or (2)
any sales or transfers by or to any one person, corporation or other
legal entity of the aggregate of twenty-five per cent (25%) or more
of the voting stock of any State bank or trust company is about to
be consummated or has been consummated, the president or other
chief executive officer of such institution immediately upon obtaining
knowledge of such change in the control of the institution or such
contemplated or consummated sale or transfer of such stock shall
report such facts to the Bank Commissioner.

Whenever application is made for a loan from any State bank or
trust company or a loan is made by any such institution, which loan
is, or is to be, secured by twenty-five per cent (25%) or more of the
voting stock of any State bank or trust company, the president or
other chief executive officer of the institution to which the applica-
tion is made or which makes the loan shall report such fact to the
Bank Commissioner, except when the applicant or borrower has been
the owner of record of the stock for a period of one year or more,
or the stock is of a newly organized State bank or trust company
prior to its opening.

(b)  As used in this section the term "control" means the posses-
sion, directly or indirectly, of the power to direct or cause the direc-
tion of the management and policy of the institution. If there is any
doubt as to whether a change in the ownership of the outstanding
voting stock of any State bank or trust company is sufficient to
effect a change in the control thereof, such doubt shall be resolved in
favor of reporting the facts to the Bank Commissioner.

(c)  The reports required in this section shall contain whatever
information is available to inform the Bank Commissioner of the
effect of the sale or loan upon control of the institution whose stock
is involved.

(d)  Any such president or other chief executive officer who shall
knowingly fail to make promptly any such report required in this
section or shall knowingly make such a report containing any state-