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LAWS OF MARYLAND

Ch. 33

SPECIFIC REQUEST OF AND FOR THE USE OF A CUSTOMER; AND

(2) THE INVESTMENT OF THE COMMERCIAL BANK IN
PERSONAL PROPERTY DOES NOT EXCEED:

(I)   FOR ANY ONE CUSTOMER, 10 PERCENT OF
THE UNIMPAIRED CAPITAL AND SURPLUS OF THE COMMERCIAL BANK;
AND

(II)   FOR ALL OF ITS CUSTOMERS, THE TOTAL
OF ITS UNIMPAIRED CAPITAL AND SURPLUS.

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

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".

The Commission to Revise the Annotated Code notes
that savings banks do not have similar power to
own and lease personal property directly, but do
so through affiliates. The General Assembly may
wish to extend the provisions of this section to
savings banks and, if so, transfer the provisions
to Title 5, Subtitle 5 of this article.

This authority to own and lease personal property
is referenced in § 3-206 of this title.

As to the investments in real property, including
leasehold interests, and furnishings that a
banking institution is permitted to make, see §
5-503 of this article.

3-606. RESTRICTIONS ON CERTIFICATION OF DRAFTS.

(A)       GENERAL RULE.

AN OFFICER, EMPLOYEE, OR AGENT OF A COMMERCIAL BANK MAY
NOT CERTIFY ANY DRAFT DRAWN ON THE COMMERCIAL BANK UNLESS
THE DRAWER HAS ON DEPOSIT AN AMOUNT EQUAL TO AT LEAST THE
AMOUNT OF THE DRAFT.

(B)       CERTIFICATION EFFECTIVE.

IF A DRAFT IS CERTIFIED IN VIOLATION OF THIS SECTION BY
A PERSON WHO IS AUTHORIZED TO CERTIFY DRAFTS, IT IS A VALID
OBLIGATION OF THE COMMERCIAL BANK.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, § 93.

Throughout this section, the term "commercial
bank", which is defined in § 1-101 of this