1080                             Laws of Maryland                      [Ch. 487

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 17, 1971.

CHAPTER 487
(Senate Bill 726)

AN ACT to repeal and re-enact, with amendments, Section 31A of
Article 11 of the Annotated Code of Maryland (1968 Replacement
Volume), title "Banks and Trust Companies," subtitle "Banks," to
make it unlawful for a foreign bank or affiliated corporation to
become a bank holding company, all as defined therein.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 31A of Article 11 of the Annotated Code of Maryland
(1968 Replacement Volume), title "Banks and Trust Companies,"
subtitle "Banks," be and it hereby is repealed and re-enacted, with
amendments, to read as follows:

31A.

(a)  No foreign banking corporation, except a national banking
association having its main office in this State, shall maintain any
office within the State to solicit deposits or to conduct a general
banking, a savings banking or a banking and trust business.

(b)  On and after July 1, 1971, it shall be unlawful for any foreign
bank or affiliated corporation to become a bank holding company.

For the purpose of this section:

1.    The term "foreign bank" means any bank or trust company
other than (i) those incorporated under the laws of this State and
having their principal offices in this State and (ii) national banking
associations having their principal offices in this State;

2.    The term "affiliated corporation" means a corporation, whether
incorporated under the laws of this State or under the laws of any
other jurisdiction, twenty-five percent or more of whose voting shares
are owned of record or beneficially by a foreign bank or by persons
who own of record or beneficially twenty-five percent or more of the
voting shares of a foreign bank, and

3.    The term "bank holding company" means a corporation which
owns of record or beneficially twenty-five percent or more of the
outstanding voting shares of a bank or trust company incorporated
under the laws of this State and having its principal offices in this
State or of a national banking association having its principal offices
in this State.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 17, 1971.