HARRY HUGHES, Governor

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specify that this excess may be secured by cash.

Also in subsection (c) (2) (ii) of this section,
the present reference to "interest-bearing"
obligations are deleted as unnecessary.

Also in subsection (c)(2)(ii) of this section,
the present reference to "bonds of the Home
Owners {sic} Loan Corporation" is deleted as
obsolete. The Home Owners' Loan Corporation was
abolished by the Act of June 30, 1953, c. 170, §
21, 67 Stat. 126, with all of its property
"transferred to the United States of America".

Subsection (d)(1) of this section is revised to
limit the present, overly broad reference to
"commercial paper" to paper "issued in connection
with a commercial transaction" for clarity.

Also in subsection (d)(1) of this section, the
term "chattel paper" is substituted for the
reference to "business paper" for clarity.

In subsection (e)(1) (ii) of this section, the
term "documents of title" is substituted for
"warehouse receipts conveying or securing title"
to conform to the terminology in the Commercial
Law Article. In this regard, see the definition
of "document of title" in CL § 1-201.

As to subsection (a)(4) of this section, the
Commission to Revise the Annotated Code suspects
that its provisions were intended merely to avoid
retroactively making unlawful any liabilities
that existed in 1937 that otherwise would be
prohibited by the 1937 amendment to the section;
as such it would be obsolete. However, it is
possible that its provisions also were intended,
for future years, to exclude any such loans from
the computations of maximum liabilities; as such,
it would not be obsolete if, in fact, there are
any such loans still outstanding. The Commission
is unsure of the legislative intent and,
therefore, has retained the substance of this
provision, subject to review by the General
Assembly.

The Commission also notes that there is no
similar limitation on the power of savings banks
to make loans. Tie General Assembly may wish to
extend the provisions of this section to impose
on savings banks limits in proportion to their
guaranty fund and, if so, to transfer the
provisions to Title 5, Subtitle 5 of this
article.

3-602. LOANS TO DIRECTORS, OFFICERS, OR EMPLOYEES.