1574

LAWS OF MARYLAND

[Ch. 311

(A)   PERMITTED.

IF PERMITTED BY THE BYLAWS, A PERSON MAY HOLD MORE
THAN ONE OFFICE IN A CORPORATION BUT MAY NOT SERVE
CONCURRENTLY AS BOTH PRESIDENT AND VICE-PRESIDENT OF THE
SAME CORPORATION.

(B)   EXECUTION OF DOCUMENTS.

A PERSON WHO HOLDS MORE THAN ONE OFFICE IN A
CORPORATION MAY NOT ACT IN MORE THAN ONE CAPACITY TO
EXECUTE, ACKNOWLEDGE, OR VERIFY AN INSTRUMENT REQUIRED BY
LAW TO BE EXECUTED, ACKNOWLEDGED, OR VERIFIED BY MORE
THAN ONE OFFICER.

REVISOR'S NOTE: Subsection (a) of this section
presently appears as the first half of the
third sentence of Art. 23, §60 (a).

Subsection (b) of this section presently
appears as the second half of the third
sentence of Art. 23, §60(a).

The only changes are in style.

It should be noted that this section is
inapplicable to close corporations. Sec.
4—102 of this article permits an officer of a
close corporation to execute documents in more
than one capacity.

2-416. LIABILITY FOR LOANS TO OFFICER OR DIRECTOR.

(A)   LIABILITY FOR LOAN.

[[EACH DIRECTOR AND OFFICER]] ALL DIRECTORS AND
OFFICERS OF A CORPORATION WHO [[MAKES, VOTES FOR, OR
ASSENTS]] MAKE, VOTE FOR, OR ASSENT to the making of a
loan by the corporation to any officer or director of
the corporation [[is]] ARE JOINTLY AND SEVERALLY LIABLE
TO THE CORPORATION FOR THE AMOUNT OF THE LOAN UNTIL IT
IS REPAID.

(B)   EXCEPTION.

THIS SECTION DOES NOT APPLY TO:

(1) AN INSTALLMENT LOAN MADE TO AN OFFICER,
DIRECTOR, OR EMPLOYEE OF THE CORPORATION FOR THE PURCHASE
OF STOCK UNDER AN OPTION PLAN AUTHORIZED UNDER § 2-207 OF
THIS TITLE;

(2) A LOAN MADE BY A SAVINGS AND LOAN
ASSOCIATION IN THE ORDINARY COURSE OF BUSINESS ON USUAL