BLAIR LEE III, Acting Governor                          987

AN ACT concerning

Sureties - Sale of Security on Default

FOR the purpose of repealing those provisions relating to
the sale by the State Treasurer of stocks and bonds
held as collateral in the event of a default on a bond
of a bank or trust company; renumbering as appropriate;
and generally relating to a sale of certain securities
on default.

BY repealing

Article 90 - Sureties

Section 10

Annotated Code of Maryland

(1969 Replacement Volume and 1977 Supplement)

BY renumbering

Article 90 - Sureties

Section 10A

to be Section 10

Annotated Code of Maryland

(1969 Replacement Volume and 1977 Supplement)

Preamble

WHEREAS, Although the Board of Public Works citation
occurs only in Section 10, Sections 8, 9, and 10 relate to
protection of bank deposits. Provisions which supercede
these are included in Sections 21 and 21A of Article 9 5
(selection of depository; security required; collateral to
be given as security by depositories). Therefore, inclusion
of Section 10 in Article 90 is unnecessary. Now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 90 — Sureties

[10.

In the event of a default upon a bond of any bank or
trust company, the stocks and bonds held as collateral, as
provided in § 9 hereof, shall be sold by the State
Treasurer, at public or private sale, upon the consent of
the banking institution pledging the same or of the receiver
or other official in charge of the affairs of said bank at
the best price obtainable by him, and the purchaser of said
stocks and bonds may pay for the same either at the time of
the transfer of said stocks and bonds or over such period or
periods of time and upon such terms as may be fixed by the
State Treasurer, and the State Treasurer, by and with the
consent of the Board of Public Works, is hereby empowered at