HARRY HUGHES, Governor

227

LOANS.

(2) IF A LOAN IS APPROVED BY AN EXECUTIVE
COMMITTEE, THE LOAN APPROVAL SHALL BE REPORTED TO THE BOARD
OF DIRECTORS AT ITS NEXT MEETING.

(D)   PERIODIC REVIEW; RENEWALS AND EXTENSIONS.

(1)   A LOAN HADE UNDER THIS SECTION SHALL BE
REVIEWED EVERY 6 MONTHS BY THE BOARD OF DIRECTORS.

(2)   THE LOAN MAY NOT BE RENEWED OR EXTENDED
UNLESS THE RENEWAL OR EXTENSION HAS BEEN APPROVED BY A
RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS
AND RECORDED IN THE MINUTES OF THE MEETING.

(E)   MAXIMUM OF LOANS.

ALL LOANS TO A DIRECTOR, OFFICER, OR EMPLOYEE OF A
COMMERCIAL BANK ARE SUBJECT TO THE LIMITATIONS IMPOSED BY §
3-601 OF THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, § 92.

Throughout this section, the term "commercial
bank", which is defined in § 1—101 of this
article, is substituted for references to a "bank
or trust company". Although the last sentence of
present Art. 11, § 92 defines "bank" to include
"savings institutions having a capital stock",
that sentence is deleted as obsolete. See
revisor's note to § 4—401 of this article.

In subsection (b) (1) of this section, the term
"commercial loan" is substituted for the
reference to a loan made "for use in {a}
business" in which the director is "actually
engaged", as contrasted to a loan made for the
"personal account" of the director. The
definition is patterned after the definition of
"commercial loan" in CL § 12—101.

In subsection (b)(2)(ii) and (iii) of this
section, the phrases beginning "unless an officer
or employee ..." are added for clarity, to
indicate that the exception is intended as a
personal exception, not a transactional one.

In subsection (c) of this section, the present
provision for approval of loans by a branch
advisory board is deleted as inaccurate, since
the functions of the board do not include loan
approvals.

In subsection (d)(2) of this section, the
reference to a "resolution" is added to the