1482

LAWS OF MARYLAND

Ch. 567

Article 23 — Corporations

Annotated Code of Maryland

(1973 Replacement Volume and 1975 Supplement)

to be

Article 23 — Miscellaneous Companies

Annotated Code of Maryland

(1973 Replacement Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 2-416 and 2-417 of Article -
Corporations and Associations, of the Annotated Code of
Maryland (1975 Volume and 1975 Supplement) be and they
are hereby repealed:

Article — Corporations and Associations

2-416.

[ (a) All directors and officers of a corporation
who make, vote for, or assent to the making of a loan by
the corporation to any officer or director of the
corporation are jointly and severally liable to the
corporation for the amount of the loan until it is
repaid.

(b) This section does not apply to:

(1)   An installment loan made to an officer,
director, or employee of the corporation for the purchase
of stock under an option plan authorized under § 2—207 of
this title;

(2)    A loan made by a savings and loan
association in the ordinary course of business on usual
and customary terms;

(3)     A loan made by a corporation the
principal business of which is to lend money;

(4)   A loan made by a corporation receiving
and authorized to receive money on deposit;

(5)    A loan made by an insurance company if
the loan is not prohibited by this article or the
Insurance Code; or

(6) An advance against indemnification made to
a person entitled to it under § 2-418 of this subtitle.]

2-417.

[All directors and officers who are held liable on a
claim asserted with respect to an unauthorized dividend,
distribution, or redemption under § 2-315 of this title
or on a claim asserted with respect to a loan to an
officer or director under § 2—416 of this subtitle are: