HARRY HUGHES, Governor

273

The balance of present Art. 11, § 41 now appears
as follows: as to receiving, investing, and
lending deposits, in § 4-206(b)(1) and (3) of
this title; as to prohibited loans, in § 4-602 of
this subtitle; as to leasing vaults and
safe-deposit boxes, in § 4-206(b)(5) of this
title; as to acting as trustee under federal
retirement acts, in §§ 4-206(b)(7) and 4-604 of
this title; as to borrowing money, in §§
4-206(b)(4) and 4-603 of this title; and as to
real property investments, in § 5-503(b) of this
article.

4-602. PROHIBITED LOANS.

A SAVINGS BANK MAY NOT LEND MONEY TO ANY OF ITS
DIRECTORS, OFFICERS, OR EMPLOYEES.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last clause
of the first sentence of Art. 11, § 41(a).

As to the balance of present Art. 11, § 41, see
the revisor's note to § 4-601 of this subtitle.

4-603. LIMITATIONS ON BORROWING.

(A)       PRIOR APPROVAL REQUIRED.

(1)   UNLESS A SAVINGS BANK HAS THE PRIOR APPROVAL
OF THE BANK COMMISSIONER, THE TOTAL AMOUNT OF ALL OF ITS
OUTSTANDING DEBTS, OTHER THAN THOSE INCURRED FOR PURPOSES OF
REPAYING ITS DEPOSITORS, SAY NOT EXCEED 5 PERCENT OF ITS
DEPOSITS.

(2)   WHEN THE DIRECTORS OF A SAVINGS BANK
AUTHORIZE IT TO BORROW MONEY FOR WHICH APPROVAL IS REQUIRED,
THE SAVINGS BANK IMMEDIATELY SHALL SEND A COPY OF THE
BOARD'S RESOLUTION TO THE BANK COMMISSIONER.

(B)       LIMITATION ON TERM.

A SAVINGS BANK MAY NOT BORROW MONEY FOR PERIODS THAT
TOTAL MORE THAN:

(1)   1 YEAR; AND

(2)   ANY ADDITIONAL RENEWAL PERIOD THAT THE BANK
COMMISSIONER APPROVES IN WRITING FOR PAYMENT OF AN UNPAID
BALANCE.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second,
third, and fifth sentences of Art. 11, § 41(c).

In subsection (a)(1) of this section, the present