232

LAWS OF MARYLAND

Ch. 33

(C)   DEMAND DEPOSIT RESERVE.

(1)   A COMMERCIAL BANK SHALL HAVE AT ALL TIMES A
RESERVE EQUAL TO AT LEAST 15 PERCENT OF ITS DEMAND DEPOSITS.

(2)   THE BOARD OF DIRECTORS OF A COMMERCIAL BANK
BY RESOLUTION SHALL DIRECT THE COMMERCIAL BANK TO KEEP THE
DEMAND DEPOSIT RESERVE REQUIRED BY THIS SECTION IN;

(I)   CASH ON HAND;

(II)   DEMAND DEPOSITS IN A BANK OF GOOD
STANDING IN ANY STATE; OR

(III)   AS TO 5 PERCENT OF ITS DEMAND
DEPOSITS, ON APPROVAL OF THE BANK COMMISSIONER:

1.   REGISTERED OR COUPON BONDS; OR

2.   GENERAL OBLIGATIONS OF OR
OBLIGATIONS GUARANTEED BY THE UNITED STATES GOVERNMENT, AN
AGENCY OF THE UNITED STATES GOVERNMENT, THIS STATE, OR ANY
POLITICAL SUBDIVISION.

(D)   TIME DEPOSIT RESERVE.

(1)   A COMMERCIAL BANK SHALL HAVE AT ALL TIMES A
RESERVE EQUAL TO AT LEAST 3 PERCENT OF ITS TIME DEPOSITS.

(2)   THE BOARD OF DIRECTORS OF A COMMERCIAL BANK
BY RESOLUTION SHALL DIRECT THE COMMERCIAL BANK TO KEEP THE
TIME DEPOSIT RESERVES REQUIRED BY THIS SECTION IN:

(I)   CASH ON HAND;

(II)   DEPOSITS IN A BANK OF GOOD STANDING
IN ANY STATE; OR

(III)   DIRECT OBLIGATIONS OF THE UNITED
STATES GOVERNMENT OR OF THIS STATE.

(E)   CHANGE BY BANK COMMISSIONER.

(1)   IF THE BANK COMMISSIONER, WITH THE ADVICE OF
THE BANKING BOARD, DETERMINES THAT A CHANGE IN THE DEMAND
DEPOSIT RESERVE OR IN THE TIME DEPOSIT RESERVE REQUIREMENTS
IS ADVISABLE TO MAINTAIN SOUND BANKING PRACTICES OR TO
PREVENT INJURIOUS CREDIT EXPANSION OR CONTRACTION, THE BANK
COMMISSIONER MAY CHANGE THE REQUIREMENTS AS PROVIDED IN THIS
SUBSECTION.

(2)   SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION,
THE BANK COMMISSIONER MAY ADOPT RULES OR REGULATIONS TO
CHANGE THE REQUIREMENTS AS TO RESERVES FOR STATE BANKS OR
FOR TRUST COMPANIES.

(3)   THE RULES AND REGULATIONS MAY: