MARVIN MANDEL,

Governor

1279

regulations [. The] IS THE effective date [of these
documents shall be as] indicated on the document.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 4, 1976.

CHAPTER 481

(House Bill 1255)

AN ACT concerning

Broker-Dealers — Net Capital Aggregate Indebtedness

FOR the purpose of granting the Maryland Securities
Commissioner the authority to vary the minimum net
capital requirement and aggregate indebtedness
limitation for certain classes of broker—dealers
which the Commissioner shall determine by

administrative rule or order.

BY repealing and reenacting, with amendments,

Article - Corporations and Associations

Section 11-409 (a)

Annotated Code of Maryland

(1975 Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 11-409 (a) of Article -
Corporations and Associations, of the Annotated Code of
Maryland (1975 Volume and 1975 Supplement) be and it is
hereby repealed and reenacted, with amendments, to read
as follows:

Article - Corporations and Associations

11-409.

(a) Any broker—dealer registered in this State
shall have and maintain a net capital of not less than
$15,000, and a broker—dealer registered in this State,
other than one who deals exclusively in securities exempt
under §11-601(1) or (2) of this Title, may not permit his
aggregate indebtedness to all other persons to exceed
2,000 percent of his net capital[.]; BUT THE COMMISSIONER
BY RULE OF ORDER MAY PERMIT ANY CLASS OF BROKER-DEALERS
TO MAINTAIN A NET CAPITAL IN AN AMOUNT OTHER THAN $15,000
OR TO INCREASE OF DECREASE THE REQUIRED PERCENT OF NET

CAPITAL EXCEPT THAT THE COMMISSIONER MAY NOT___PERMIT ANY

NET CAPITAL OR PERCENT OF NET CAPITAL REQUIREMENT WHICH