HARRY HUGHES, Governor

193

(II) § 3-210(B) OF THIS TITLE, AS TO TRUST
COMPANIES.

(B) BASIS OF BANK COMMISSIONER'S APPROVAL.

THE BANK COMMISSIONER SHALL BASE APPROVAL ON A FINDING
THAT THE ASSETS OF THE COMMERCIAL BANK REMAINING AFTER THE
PROPOSED REDUCTION OF ITS CAPITAL STOCK, WILL BE SUFFICIENT
TO PAY ALL OF THE CLAIMS OF EXISTING CREDITORS.

REVISOR'S NOTE: This section is new language derived
without substantive change from the third and
fourth sentences of Art. 11, § 68.

In subsection (a)(1) of this section, the present
provisions that a reduction, unless approved by
the Bank Commissioner, does not "warrant the
cancellation of stock certificates" or "diminish
the ... liability of stockholders" is deleted as
unnecessary in light of the simple Statement that
the reduction, unless approved, "{i}s not valid".

The term "commercial bank" is defined in § 1—101
of this article.

The last sentence of present Art. 11, § 68, which
calls for the construction of that section
"retrospectively as well as prospectively", is
deleted as unnecessary.

3-306. MAINTENANCE OF SURPLUS; LOSSES.

(A)   MAINTENANCE OF SURPLUS.

IF THE SURPLUS OF A COMMERCIAL BANK AT ANY TIME IS LESS
THAN 100 PERCENT OF ITS REQUIRED CAPITAL STOCK, THEN, UNTIL
THE SURPLUS IS 100 PERCENT OF THE REQUIRED CAPITAL STOCK,
THE COMMERCIAL BANK:

(1)   SHALL REIMBURSE THE SURPLUS FROM ITS
UNDIVIDED PROFITS; AND

(2)   MAY NOT DECLARE OR PAY ANY CASH DIVIDENDS
THAT EXCEED 90 PERCENT OF ITS NET EARNINGS.

(B)   LOSSES.

ANY LOSSES OF A COMMERCIAL BANK THAT EXCEED ITS
UNDIVIDED PROFITS MAY BE CHARGED TO ITS SURPLUS.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second
sentence of Art. 11, § 95.

Throughout this section, the term "commercial
bank" is substituted for references to a "bank or
trust company". See revisor's note to § 3—307 of