1418                             Laws of Maryland                      [Ch. 667

CHAPTER 667
(Senate Bill 623)

AN ACT to repeal and re-enact, with amendments, Sections 419 (b),
420 (a), and 428 of Article 23 of the Annotated Code of Maryland
(1966 Replacement Volume), title "Corporations," subtitle "De-
velopment Credit Corporation," to alter and clarify the procedure
for and the conditions of withdrawal from the corporation by
member banks; to establish the method of determining the loan
participation of member banks and the repayment to participat-
ing member banks of their participation in certain loans; to
establish the procedure for allocating participation of member
banks in loans made after July 1, 1971, and the terms of repay-
ment to participants therein; to establish the method of evi-
dencing indebtedness of the corporation to member banks; and
to alter the basis for determining the maximum rate of interest
charged on all loans made by the corporation and to exempt cer-
tain consultant fees and stock options therefrom.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 419 (b), 420 (a) and 428 of Article 23 of the Anno-
tated Code of Maryland (1966 Replacement Volume), title "Corpo-
rations," subtitle "Development Credit Corporation," be and they are
hereby repealed and re-enacted, with amendments, to read as follows:

419. Membership

(b) Withdrawal from membership. Membership in the corpora-
tion shall be for the duration of the corporation provided that:

1.    Upon written notice given to the corporation [one year in
advance] a member may withdraw from membership in the corpo-
ration at the expiration [date of such notice, or;] of 60 days after
receipt of notice by the corporation.

2.    If there shall be a legislative amendment of this charter which
shall not have been approved by the members and stockholders as
provided for in Section 418 within sixty days after the effective date
of such amendment, any member voting against the approval of such
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 cor-
poration pursuant to calls made subsequent to the receipt of notice
of the withdrawal of said member.] Subsequent to the expiration
date of any notice of withdrawal, a withdrawing member shall not
be obligated to make any loans to the corporation pursuant to calls
made after such expiration date, except for loans accrued or com-
mitted by the corporation prior to such expiration date. A with-
drawing member shall receive repayment of existing indebtedness
due by the corporation to that Member at the expiration date of
its notice to withdrawal in the same manner provided in Section
420 of this Article 23 for the normal repayment of all indebtedness
to members.