1764

LAWS OF MARYLAND

[Ch. 311

In subsection (b) (1) of this section, the
phrase "State bank," is substituted for the
phrase "any person, copartnership,
incorporated bank, or other incorporated
institution now engaged in the banking
business in this State" because this section
applies only to State banks.

In subsection (c) of this section, the term
"debt instruments," which is defined in
§6—101(e) of this subtitle, is substituted for
"capital notes, debentures, bonds, or
certificates of beneficial interests."

Present § 70 specifically refers to the
minimum capital stock requirements of present
§ 28. It is unclear whether "capital
structure" refers solely to capital stock or
if it includes both capital stock and surplus.
An exception to inclusion of debt instruments
as part of the State bank's capital structure
appears in § 6—127(b) of this subtitle, which
provides for ownership of capital stock by a
director.

The provisions of present §28 which relate to
formation of the State banks are included in
§6-112 of this subtitle.

The provisions which authorize establishment
of a branch appear in Art. 11, §65.

The word "inhabitants" is defined in §6—101(f)
of this subtitle.

6-118. CAPITAL PAYMENTS BEFORE COMMENCEMENT OF BUSINESS.

(A)   FULL PAYMENT REQUIRED.

A STATE BANK MAY NOT COMMENCE BUSINESS UNTIL ALL THE
CAPITAL STOCK FOR WHICH ITS CHARTER PROVIDES AND THE
REQUIRED SURPLUS ARE FULLY PAID.

(B)   FORM OF PAYMENT.

EXCEPT AS THE LAW PROVIDES OTHERWISE, PAYMENT SHALL
BE IN MONEY AND MAY NOT BE IN NOTES, SECURITIES, OR
PROPERTY.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last
clause in the second sentence of Art. 11, §28,

Exceptions to the form of payment for capital