1798

LAWS OF MARYLAND

[Ch. 311

(B)   IMPAIRMENT OF CAPITAL STOCK.

THE ISSUANCE OF A DEBT INSTRUMENT DOES NOT IMPAIR
THE CAPITAL STOCK OF THE TRUST COMPANY IF THE AMOUNT OF
THE DEBT INSTRUMENT IS REPRESENTED BY CASH OR SOUND
ASSETS WHICH EXCEED THE IMPAIRMENT DETERMINED BY THE
COMMISSIONER,

(C)   NO STOCKHOLDER LIABILITY.

THE HOLDER OF A DEBT INSTRUMENT IS NOT SUBJECT
TO ANY LIABILITY IMPOSED ON STOCKHOLDERS UNDER ANY LAW OF
THE STATE.

(D) PRIORITIES.

A DEBT INSTRUMENT IS SUBORDINATE TO THE CLAIMS OF
ANY DEPOSITOR OR CREDITOR, BUT IT IS PREFERRED TO THE
CLAIM OF ANY STOCKHOLDER IN THE EVENT OF LIQUIDATION.

(E) VOTING RIGHTS,

THE HOLDER OF ANY DEBT INSTRUMENT HAS THE VOTING
BIGHTS APPROVED BY THE COMMISSIONER AND PROVIDED IN THE
CHARTER.

(F) RETIREMENT.

BEFORE THE TRUST COMPANY RETIRES OR PAYS ANY DEBT
INSTRUMENT, ANY EXISTING DEFICIT IN ITS CAPITAL,
DISREGARDING ANY DEBT INSTRUMENT TO BE RETIRED, SHALL BE
PAID IN CASH SO THAT THE SOUND CAPITAL ASSETS OF THE
TRUST COMPANY ARE AT LEAST EQUAL TO ITS CAPITAL STOCK.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, §70,
as it relates to trust companies, except the
last paragraph which is included in §6—138(c)
of this subtitle.

The provision for voting rights of preferred
stock, presently in Art. 11, §69, are included
in §6-142(f) of this subtitle.

The term "debt instrument" is defined in
§6-101(e) of this subtitle.

The provisions of present §70 as they relate
to State banks are included in §§ 6-117(c) and
6—125 of this subtitle.

6-147. MANAGEMENT OF TRUST COMPANY.

(A) DIRECTORS; QUORUM.