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LANS OF MARYLAND

Ch. 33

present reference to the required recording "in
the minutes" for clarity and for conformity to
the like reference in subsection (c) of this
section.

As to the federal limitations on loans to
executive officers, directors, and certain
stockholders of a federal reserve bank, see 12
U.S.C. § 375b.

3-603. CARRYING BILLS PAYABLE OR REDISCOUNTS IN AN AMOUNT
GREATER THAN CAPITAL.

UNLESS THE BANK COMMISSIONER GIVES WRITTEN APPROVAL FOR
AN EXTENSION OF TIME, A COMMERCIAL BANK MAY NOT CARRY FOR
MORE THAN 90 DAYS A TOTAL OF BILLS PAYABLE AND REDISCOUNTS
THAT EXCEEDS THE UNIMPAIRED CAPITAL AND SURPLUS OF THE
COMMERCIAL BANK.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, § 79.

The term "commercial bank", which is defined in §
1—101 of this article, is substituted for the
reference to a "bank or trust company".

The term "unimpaired" is substituted for
"paid-in". The latter is an unnecessary
limitation, while the substitution is consistent
with the apparent intent of the section and with
similar provisions appearing elsewhere in this
article. See, e.g., § 12—103 of this article.

3-604. ACCEPTANCE OF DRAFTS.

(A)   DRAFTS FOR SHIPMENT OF GOODS.

A COMMERCIAL BANK MAY ACCEPT FOR PAYMENT AT A LATER
DATE A DRAFT ISSUED IN CONNECTION WITH A TRANSACTION THAT
INVOLVES THE IMPORTATION, EXPORTATION, OR DOMESTIC SHIPMENT
OF GOODS, IF THE DRAFT:

(1)   IS PAYABLE NOT MORE THAN 6 MONTHS AFTER THE
DATE OF ACCEPTANCE; AND

(2)   WHEN ACCEPTED, IS ACCOMPANIED BY A DOCUMENT
OF TITLE.

(B)   DRAFTS FROM FOREIGN BANKS.

A COMMERCIAL BANK MAY ACCEPT A DRAFT THAT A BANK OR
BANKER IN ANY FOREIGN COUNTRY OR ANY POSSESSION OR TERRITORY
OF THE UNITED STATES DRAWS ON THE COMMERCIAL BANK TO PROVIDE
DOLLAR EXCHANGE REQUIRED BY TRADE USAGE IN THE FOREIGN
COUNTRY, POSSESSION, OR TERRITORY IF:

(1) THE DRAFT IS PAYABLE NOT MORE THAN 3 MONTHS