MARVIN MANDEL, Governor

783

bank or banks, trust company or trust companies of good
standing, as the board of directors or executive
committee by resolution may direct. A bank or trust
company may keep as part of its reserve requirements an
amount not to exceed 5[%] PERCENT of its deposits in the
form of registered or coupon bonds, public stock of the
United States or the State of Maryland, or Baltimore
City, or the bonds of any county or municipal corporation
of this State, which shall be approved by the
Commissioner. Every tank and trust company shall also
keep on hand at all times a reserve of at least [three] 3
percent [(3%)] of their time deposits; which reserve may
be kept as cash on hand, or on deposit in such bank or
banks, or trust company or trust companies of good
standing, as the board of directors or executive
committee by resolution may direct, or in the form of
direct obligations of the United States government, or
the State of Maryland. Cash items [shall] MAY not be
considered as a part of the reserve herein required to be
kept by either banks or trust companies. [No] A state
bank or trust company [shall] MAY NOT be required to
maintain any such reserve on a deposit of public funds
when such deposits are fully secured by pledge of
collateral as authorized and permitted by this article.

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

Approved May 4, 1976.

CHAPTER 262

(Senate Bill 134)

AN ACT concerning

Banks and Trust Companies — Debt Instruments

FOR the purpose of requiring the approval of the State
Bank Commissioner before a State bank or trust
company may retire any debt instrument; and making
stylistic changes.

BY repealing [[and reenacting, with amendments,]]

Article — Corporations and Associations
Section 6-125(f) and 6-146(f)
Annotated Code of Maryland
(1975 Volume and 1975 Supplement)

BY adding to

Article — Corporations and Associations