HARRY HUGHES, Governor

229

AFTER THE DATE OF ACCEPTANCE;

(2)       THE AMOUNT OF THE EXCHANGE DOES NOT EXCEED
50 PERCENT OF THE UNIMPAIRED CAPITAL AND SURPLUS OF THE
COMMERCIAL BANK; AND

(3)       FOR ANY EXCHANGE THAT EXCEEDS 10 PERCENT OF
THE UNIMPAIRED CAPITAL AND SURPLUS OF THE COMMERCIAL BANK,
THE DRAFT IS ACCOMPANIED BY A DOCUMENT OF TITLE OR OTHER
ADEQUATE SECURITY.

REVISOR'S NOTE: This section is new language that
combines without substantive change the identical
provisions of Art. 11, §§ 31(a) and 57(a).

Throughout this section, the term "commercial

bank", which is defined in § 1-101 of this

article, is substituted for the independent

references to "State bank"    and "trust company".

In subsections (a) (2) and (b)(3) of this section,
the term "document of title" is substituted for
the references "shipping document which conveys
or secures title", "warehouse receipt", and
"other document{s} which conveys or secures
title". This change conforms to the terminology
in the Commercial Law Article. In this regard,
see the definition of "document of title" in CL §
1-201.

In subsection (b)(2) of this section, the present
term "paid up" is deleted as an unnecessary
limitation in light of the term "unimpaired".
The use of the latter term by itself is
consistent with the apparent intent of the
subsection and with similar provisions appearing
elsewhere in this article. See, e.g., § 12—103
of this article.

As to the general authority of a commercial bank
to accept drafts, see § 3-206(b)(4) of this
title.

3-605. OWNING AND LEASING PERSONAL PROPERTY.

(A)   SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO A LEASEHOLD INTEREST IN
REAL PROPERTY.

(B)   IN GENERAL.

SUBJECT TO THE RULES AND REGULATIONS OF THE BANK
COMMISSIONER, A COMMERCIAL BANK MAY BECOME THE OWNER AND
LESSOR OF PERSONAL PROPERTY IF:

(1) THE PERSONAL PROPERTY IS ACQUIRED ON THE