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LAWS OF MARYLAND

Ch. 33

THIS SECTION DOES NOT APPLY TO:

(1)   ANY READILY MARKETABLE BOND OR LIKE
OBLIGATION THAT IS HELD BY A COMMERCIAL BANK AS AN

INVESTMENT;

(2)   ANY LOAN THAT IS MADE TO THIS STATE OR TO A
POLITICAL SUBDIVISION AND THAT MATURES IN LESS THAN 1 YEAR;

(3)   ANY LOAN OF $3,500 OR LESS, UNLESS THAT LOAM
EXCEEDS 20 PERCENT OF THE UNIMPAIRED CAPITAL AND SURPLUS OF
THE COMMERCIAL BANK; OR

(4) ANY LIABILITY LAWFULLY INCURRED BEFORE JUNE
1, 1937.

(B)   MAXIMUM OF ALL LIABILITIES.

THE TOTAL OF ALL LIABILITIES OF ANY ONE PERSON TO A
COMMERCIAL BANK, INCLUDING ALL LIABILITIES REFERRED TO IN
THIS SECTION, MAY NOT EXCEED AT ANY TIME 30 PERCENT OF THE
UNIMPAIRED CAPITAL AND SURPLUS OF THE COMMERCIAL BANK.

(C)   MAXIMUM OF LOANS.

(1)   IN THIS SUBSECTION, "LOAN":

(I) INCLUDES AN OBLIGATION UNDER A STANDBY
LETTER OF CREDIT; AND

(II) DOES NOT INCLUDE ANY DISCOUNT OR
OBLIGATION THAT IS SUBJECT TO SUBSECTIONS (D) OR (E) OF THIS
SECTION.

(2)   THE TOTAL LIABILITY OF ANY ONE PERSON TO A
COMMERCIAL BANK FOR LOANS MAY NOT EXCEED AT ANY TIME:

(I)   10 PERCENT OF THE UNIMPAIRED CAPITAL
AND SURPLUS OF THE COMMERCIAL BANK; OR

(II)   30 PERCENT OF THE UNIMPAIRED CAPITAL
AND SURPLUS OF THE COMMERCIAL BANK IF THE EXCESS OVER 10
PERCENT IS APPROVED BY A TWO THIRDS VOTE OF THE BOARD OF
DIRECTORS AND IS SECURED BY CURRENCY OR OBLIGATIONS OF THE
UNITED STATES OR OBLIGATIONS OF THIS STATE OR ANY POLITICAL
SUBDIVISION.

(D)   MAXIMUM OF DISCOUNTS OF COMMERCIAL PAPER.

(1)   IN THIS SUBSECTION, "COMMERCIAL PAPER" MEANS
ANY COMMERCIAL PAPER ISSUED IN CONNECTION WITH A COMMERCIAL
TRANSACTION OR ANY CHATTEL PAPER, IF THE PERSON NEGOTIATING
THE COMMERCIAL PAPER OR CHATTEL PAPER OWNS IT.

(2)   THE TOTAL LIABILITY OF ANY ONE PERSON TO A
COMMERCIAL BANK FOR DISCOUNTS OF COMMERCIAL PAPER MAY NOT
EXCEED AT ANY TIME 25 PERCENT OF THE UNIMPAIRED CAPITAL AND