242

LAWS OF MARYLAND

[Ch. 49

by its terms is divisible into a class or series of
instruments; and

(iv) Evidences a share, participation or
other interest in property or in an enterprise or
evidences an obligation of the issuer.

(b)   A writing which is a security is governed
by this [subtitle] TITLE and not by Uniform Commercial
Code—Commercial Paper even though it also meets the
requirements of that [subtitle] TITLE. This [subtitle]
TITLE does not apply to money.

(c)    A security is in "registered form" when
it specifies a person entitled to the security or to the
rights it evidences and when its transfer may be
registered upon books maintained for that purpose by or
on behalf of an issuer or the security so states.

(d)    A security is in "bearer form" when it
runs to bearer according to its terms and not by reason
of any indorsement.

(2)    A "subsequent purchaser" is a person who takes
other than by original issue.

(3)  A "clearing corporation" is a corporation (a) at
least ninety percent of the capital stock of which is
held by or for one or more persons (other than
individuals), each of whom

(i) Is subject to supervision or regulation
pursuant to the provisions of federal or state banking
laws or state insurance laws, or

(ii) Is a broker or dealer or investment
company registered under the Securities Exchange Act of
1934 or the Investment Company Act of 1940, or

(iii) Is a national securities exchange or
association registered under a statute of the United
States such as the Securities Exchange Act of 1934, and
none of whom, other than a national securities exchange
or association, holds in excess of twenty percent of the
[captial] CAPITAL stock of such corporation; and

(b) Any remaining capital stock of which is
held by individuals who have purchased such capital stock
at or prior to the time of their taking office as
directors of such corporation and who have purchased only
so much of such capital stock as may be necessary to
permit then; to qualify as such directors.

(4)   A "custodian bank" is any bank or trust company