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LAWS OF MARYLAND

Ch. 33

(A)   IN GENERAL.

UNLESS THE LOAN IS APPROVED OR EXEMPTED FROM APPROVAL
AS PROVIDED IN THIS SECTION, THE FOLLOWING PERSONS MAY NOT
BORROW, DIRECTLY OR INDIRECTLY, ANY MONEY FROM A COMMERCIAL
BANK:

(1)   ANY DIRECTOR, OFFICER, OR EMPLOYEE OF THE
COMMERCIAL BANK;

(2)   ANY PARTNERSHIP OF WHICH THE DIRECTOR,
OFFICER, OR EMPLOYEE IS A MEMBER; OR

(3)   ANY CORPORATION IN WHICH THE DIRECTOR,
OFFICER, OR EMPLOYEE IS AN OFFICER OR OWNS THE MAJORITY
INTEREST.

(B)   EXCEPTION AS TO DIRECTORS.

(1)   IN THIS SUBSECTION, "COMMERCIAL LOAN" MEANS
A LOAN THAT IS MADE:

(I)   SOLELY TO ACQUIRE OR CARRY ON A
BUSINESS OR COMMERCIAL ENTERPRISE; OR

(II)   TO ANY BUSINESS OR COMMERCIAL
ORGANIZATION.

(2)   THIS SECTION DOES NOT REQUIRE APPROVAL OF A
COMMERCIAL LOAN THAT IS MADE TO:

(I)   A DIRECTOR OF THE COMMERCIAL BANK,
UNLESS THE DIRECTOR ALSO IS AN OFFICER OR EMPLOYEE OF THE
COMMERCIAL BANK;

(II)   A PARTNERSHIP OF WHICH THE DIRECTOR
IS A MEMBER, UNLESS AN OFFICER OR EMPLOYEE OF THE COMMERCIAL
BANK ALSO IS A MEMBER OF THAT PARTNERSHIP; OR

(III)   A CORPORATION IN WHICH THE DIRECTOR
HOLDS ANY INTEREST, UNLESS AN OFFICER OR EMPLOYEE OF THE
COMMERCIAL BANK IS AN OFFICER OR OWNS THE MAJORITY INTEREST
IN THAT CORPORATION.

(C)   REQUIRED APPROVAL.

(1) A LOAN TO A DIRECTOR, OFFICER, OR     EMPLOYEE

OF A COMMERCIAL BANK MAY BE MADE ONLY IF THE LOAN   HAS BEEN

APPROVED BY A RESOLUTION ADOPTED AT AND RECORDED     IN THE
MINUTES OF A MEETING OF:

(I) THE BOARD OF DIRECTORS OF THE

COMMERCIAL BANK; OR

(II) THE EXECUTIVE COMMITTEE OF THE
COMMERCIAL BANK, IF THAT COMMITTEE IS AUTHORIZED TO MAKE