238                              Laws of Maryland                        [Ch. 34

CHAPTER 34
(Senate Bill 245)

AN ACT to repeal and re-enact, with amendments, Sections 84A (a),
136B, and 420 (a) of Article 23 of the Annotated Code of Mary-
land (1971 Supplement), title "Corporations," subtitles, respec-
tively, "Stock Corporations," "Nonstock Corporations," and "Par-
ticular Classes of Corporations," correcting certain errors in the
laws relating to corporations.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 84A (a), 136B, and 420 (a) of Article 23 of the An-
notated Code of Maryland (1971 Supplement), title "Corporations,"
subtitles, respectively, "Stock Corporations," "Nonstock Corpora-
tions," and "Particular Classes of Corporations," be and the same
are hereby repealed and re-enacted, with amendments, to read as
follows:

420.

(a) Calls on members; 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 as of December 31 each year 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 percent of capital and surplus; savings banks, two
percent of the guarantee fund and undivided surplus; provided, how-
ever, that except as hereinafter permitted the total amount on loan
by any member at any time shall not exceed two hundred fifty thou-
sand dollars. All loan limits shall be established 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 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. Notwith-
standing 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.

The corporation shall issue a call for funds on its members on
July 1, 1971, equal to the total principal sum then due the corpora-
tion by all its borrowers, less the principal amount then due on loans
made to the corporation other than by members. This call shall be
prorated among members on the basis of the percentage which the
maximum loan limit of each member bears to the total of the maxi-
mum loan limit of all members as determined on the basis of capital
and surplus of all members as of December 31, 1970. The corpora-
tion shall simultaneously with the making of such call select loans
from its loan portfolio having a total unpaid principal balance then
due the corporation approximating as closely as possible such call.
A participating interest in each loan so selected shall be allocated
on the books of the corporation to each member on the basis of the
percentage used to arrive at the amount each member shall have
been called upon to loan the corporation. All indebtedness to mem-