192

LAWS OF MARYLAND

Ch. 33

"savings institution having a capital stock",
that sentence is deleted as obsolete. See
revisor's note to § 4—401 of this article.

As to the use of the term "outstanding capital
stock", see § 3-101(b) of this title and its
revisor's note.

In subsection (a)(1) of this section, the present
reference to a "discount" is deleted as
unnecessary given the broad reference to "any
loan".

In subsection (b) of this section, the present
reference to "at public or private sale" is
deleted as unnecessary.

The third clause of the first sentence of present
Art. 11, § 80 provides that, in default of making
the required disposition, the commercial bank
"shall be regarded as conducting its business in
an unauthorized manner" and that the Bank
Commissioner may place the bank in receivership
"in the manner provided by § 11 of {Article 11}".
Before 1964, then Art. 11, § 11 authorized the
Bank Commissioner to place a banking institution
in receivership if it was "conducting its
business in an unsafe or unauthorized manner".
However, Ch. 126, Acts of 1964, totally rewrote §
11 to apply to the removal of directors and
officers only, and the law no longer provides for
receivership proceedings on the grounds of doing
business in an "unauthorized manner".
Accordingly, this clause of present Art. 11, § 80
is deleted as obsolete.

The last clause of the first   sentence of Art.

11, § 80, which exempts from the     section shares

pledged to a commercial bank   before April 21,
1933, is deleted as obsolete.

3-305. REDUCTION OF CAPITAL.

(A) LIMITATIONS ON REDUCTION.

A REDUCTION OF THE OUTSTANDING CAPITAL STOCK OF A
COMMERCIAL BANK:

(1)   IS NOT VALID UNLESS APPROVED BY THE BANK
COMMISSIONER; AND

(2)   MAY NOT BE MADE TO AN AMOUNT THAT IS LESS
THAN THAT REQUIRED IN:

(I) § 3-209(B) OF THIS TITLE, AS TO STATE
BANKS; OR