HARRY HUGHES, Governor

203

MANAGEMENT OR POLICY OF THE COMMERCIAL BANK WHOSE STOCK IS
INVOLVED.

(D) VIOLATIONS PROHIBITED.

THE CHIEF EXECUTIVE OFFICER OF A COMMERCIAL BANK MAY
NOT KNOWINGLY:

(1)   FAIL TO MAKE PROMPTLY A REPORT REQUIRED BY
THIS SECTION; OR

(2)   MAKE A REPORT UNDER THIS SECTION THAT
CONTAINS ANY STATEMENT THAT THE OFFICER KNOWS TO BE FALSE.

REVISOR'S NOTE:   This section is new     language derived

without        substantive change     from the second

paragraph   of Art. 11, § 106G(a)   and from Art. 11,

§ 108G (c)    and (d).

Throughout this section, the term "commercial

bank", which is defined in § 1-101 of this

article, is substituted for      references to a
"State bank or trust company".

In subsection (c) of this section, the present
reference to "sale" of commercial bank stock is
deleted as obsolete. As amended by Ch. 29 4, Acts
of 1979, the balance of present Art. 11, § 108G
— now § 3-314 of this subtitle — imposes
different reporting requirements, as to purchases
and other acquisitions of capital stock.

In subsection (d) of this section, the present
specific penalties for violations are deleted as
unnecessary in light of the general provisions of
§ 5—802 of this article, which establish the same
penalties for violations of any of the provisions
of this article relating to a banking
institution.

GENERAL REVISOR'S NOTE:

In revising this subtitle, the Commission to Revise the
Annotated Code deleted as obsolete present Art. 11, § 99,
which states that stock is personal property and that a
stock transfer is invalid if it is made during a period when
a commercial bank has notice of an impairment of its capital
stock account. The Commission notes that these provisions
derive from the concept that capital stock was assessable
and, thus, that its transfer should be regulated. As no
assessable stock is now permitted, regulation of its
transfer is unnecessary.

SUBTITLE 4. DIRECTORS AND OFFICERS.

3-401. MANAGEMENT OF COMMERCIAL BANK.