202                                               LAWS OF MARYLAND                                       Ch. 33

paragraph of Art. 11, § 108G(a) and from Art. 11,
§ 108G(b) and (c).

This section is revised to apply to all stock
acquisitions, rather than just acquisitions by
purchase. Although present Art. 11, § 108G(a)
imposes reporting requirements only on "the
purchaser", other provisions of that subsection
refer to "a change ... in the outstanding voting
stock", "any sales or purchases", "possession",
"change in the ownership", and "the sale". It
would appear that, in addition to purchases of
stock, other acquisitions are intended to be
covered.

Subsection (a) (2) of this section is new language
added to clarify the present reference to a "bank
holding company". In present Art. 11, § 31A(b)
— now § 12-201 of this article — the term "bank
holding company" is defined for purposes of the
prohibition against a foreign bank or affiliated
corporation being a bank holding company.
However, the Bank Commissioner indicates that the
intent of Ch. 294, Acts of 1979, which added the
reference to a bank holding company in this
section, was to conform the requirements as to
stock acquisitions to the federal law. As to the
federal law, see 12. U.S.C. § 1841 et seq.

3-315. LOANS SECURED BY STOCK.

(A)   WHEN REQUIRED.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION,
THE CHIEF EXECUTIVE OFFICER OF A COMMERCIAL BANK SHALL
REPORT TO THE BANK COMMISSIONER AS SOON AS THE OFFICER
BECOMES AWARE THAT ANY PERSON HAS APPLIED FOR OR HAS
RECEIVED A LOAN FROM THE COMMERCIAL BANK THAT IS TO BE
SECURED BY 25 PERCENT OR MORE OF THE VOTING STOCK OF ANY
COMMERCIAL BANK.

(B)   APPLICATION OF SECTION.
THIS SECTION DOES NOT APPLY IF:

(1)   THE LOAN APPLICANT OR BORROWER HAS BEEN THE
OWNER OF RECORD OF THE STOCK FOR AT LEAST 1 YEAR; OR

(2)   THE STOCK IS STOCK OF A NEWLY ORGANIZED BUT
NOT YET OPENED COMMERCIAL BANK.

(C)   CONTENTS OF REPORT.

A REPORT REQUIRED BY THIS SECTION SHALL DESCRIBE THE
LOAN TRANSACTION AND CONTAIN WHATEVER INFORMATION IS
AVAILABLE TO INFORM THE BANK COMMISSIONER OF THE EFFECT OF
THE LOAN ON THE POWER TO DIRECT OR CAUSE DIRECTION OF THE