MARVIN MANDEL, Governor

1763

(2) A STATE BANK ALSO SHALL HAVE A SURPLUS IN AN
AMOUNT EQUAL TO 20 PERCENT OF ITS CAPITAL STOCK.

(B)   EXCEPTION.

THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION DO
NOT APPLY TO A STATE BANK WHICH NOW IS ENGAGED IN
BUSINESS UNLESS:

(1)    THE STATE BANK ESTABLISHES A BRANCH
OUTSIDE THE MUNICIPAL AREA OF ITS MAIN OFFICE, IN WHICH
CASE THE STATE BANK SHALL INCREASE ITS CURRENT CAPITAL
AND SURPLUS BY AN AMOUNT EQUAL TO THE AMOUNT WHICH WOULD
BE REQUIRED FOR THE SEPARATE INCORPORATION OF THE BRANCH
LESS THE AMOUNT BY WHICH THE CURRENT CAPITAL AND SURPLUS
OF THE STATE BANK EXCEEDS THAT OTHERWISE REQUIRED BY
SUBSECTION (A) OF THIS SECTION.

(2)    THE STATE BANK ESTABLISHES A BRANCH
INSIDE THE MUNICIPAL AREA OF ITS MAIN OFFICE, IN WHICH
CASE THE STATE BANK SHALL HAVE THE CAPITAL AND SURPLUS
REQUIRED BY SUBSECTION (A) OF THIS SECTION.

(C)   DEBT INSTRUMENTS.

UNLESS THE LAW PROVIDES OTHERWISE, THE CAPITAL
STRUCTURE OF A STATE BANK INCLUDES ITS DEBT INSTRUMENTS
ISSUED UNDER §6-125 OF THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, §28
and the last paragraph of Art. 11, §70.

The provisions   of present §70 which relate to

deferment as to payment are deleted as

unnecessary in light of §6—125(d) of this
subtitle.

In subsection(a) (i) , (ii), and (iii) of this
section, the phrase "not more than" is
substituted for "up to" to correct a gap which
occurs in a municipal area with a population
of exactly 15,000, exactly 50,000, or exactly
150,000 inhabitants.

In subsection (b) of this section, the phrase
"municipal area of its main office" is
substituted for the phrase "where they are now
located" to avoid confusion if the State bank
has extant branches and to conform with the
requirements for establishment of branches by
a savings institution. The term "municipal
area" is defined in Title 1 of this article.