HARRY HUGHES, Governor

205

DIRECTOR SHALL BE IN THE AMOUNT Of AT LEAST:

(I)   $500; OR

(II)   $250, IF THE COMMERCIAL BANK IS A
STATE BANK THAT HAS $50,000 OR LESS IN CAPITAL STOCK.

(3) TO DETERMINE THE AMOUNT OF CAPITAL STOCK
OWNED BY A DIRECTOR:

(I)   ONLY THE PAR OR STATED VALUE OF COMMON
AND PREFERRED STOCK MAT BE CONSIDERED; AND

(II)   DEBT INSTRUMENTS OF THE COMMERCIAL
BANK OR CORPORATION MAY NOT BE CONSIDERED.

(B) STATE BANKS.

A MAJORITY OF THE DIRECTORS OF A STATE BANK SHALL BE
RESIDENTS OF THIS STATE.

REVISOR'S NOTE: This section is new language that
combines without substantive change CA §§
6-127(b) and 6-148(b).

In subsection (a)(1) of this section, the
introductory phrase "{a}fter the initial issuance
of capital stock..." is added to permit the
initial directors named in the articles of
incorporation (see § 3-202(b)(6) of this title)
to serve and function until they can meet the
requirements of this section.

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

The terms "capital stock", "debt instrument", and
"State bank" are defined in § 3-101 of this
title.

As to prohibitions against multiple

directorships, see § 5—510 of this article.

As to subsection (a) of this section, the General
Assembly might consider whether its provisions
continue to serve any useful purpose.

As to subsection (b) of this section, the General
Assembly might consider whether this requirement
should apply to trust companies as well as State
banks.

3-404. OATH OF DIRECTORS.

EACH DIRECTOR OF A COMMERCIAL BANK SHALL TAKE AN OATH:

(1) TO PERFORM DILIGENTLY AND HONESTLY THE