J. MILLARD TAWES, Governor                       343

amendment may withdraw from membership forthwith upon giving
written notice to the corporation not later than ninety days from the
effective date of such amendment.

A member shall not be obligated to make any loans to the corpora-
tion pursuant to calls made subsequent to the receipt of notice of the
withdrawal of said member.

420.    Loan limits.

(a) Limits. Each member shall lend funds to such corporation
as and when called upon to do so, but except as hereinafter permitted
the total amount on loan by any member at any one time shall not
exceed the following limit to be determined as of the time it became
a member, and such amount shall thereafter be readjusted annually
in the event of any change in the base of the loan limit of such
member: National banking associations, State-chartered commercial
banks and trust companies, two per cent of capital and surplus;
savings banks, two per cent of the guarantee fund and undivided
surplus; provided, however, that except as hereinafter permitted the
total amount on loan by any member at any time shall not exceed
two hundred fifty thousand dollars. All loan limits shall be estab-
lished at the thousand dollar nearest to the amount computed on an
actual basis. All calls of funds which members are committed to lend
to such corporation [shall] may be prorated by such corporation
among the members in the same proportion that the maximum loan
limit of each bears to the aggregate loan limits of all members of
such corporation. Such corporation shall have the right, in its dis-
cretion, to rotate loans among its members. Notwithstanding any
other provisions of this subsection any member may lend funds to
the corporation in excess of the loan limit for such corporation as
above provided.

Notwithstanding the provisions of any other law, general or
special, the notes or other interest-bearing obligations of such cor-
poration, issued in accordance with and by virtue of this subtitle
and the bylaws of such corporation, shall be legal investments for
the financial institutions which become members of such corporation.

(c) Limitation on indebtedness. At no time, shall the aggregate
outstanding principal balance of the corporation's indebtedness to
its members, exceed an amount equal to ten times the sum of the
corporation's paid-in capital and surplus [.] , provided, however,
that such limitation shall not apply to the issuance to, or holding by,
members of the corporation of any indebtedness of the corporation
arising out of the issuance of bonds, debentures, notes, or other
evidences of indebtedness under the provisions of Section 426 of this
Article.

421.    Capital stock.

The authorized capital stock of the corporation shall consist of two
million shares of common stock with a par value of one dollar each,
which shares shall be issued only on receipt by the corporation of
cash in such amount not less than the par value thereof as may be
determined by the board of directors.

[At least five per cent of the capital stock of such corporation shall
be paid into its treasury in cash before it shall be authorized to