588

LAWS OF MARYLAND

Ch. 33

(2) "INVESTMENT" DOES NOT INCLUDE ANY PAYMENT
FOR RENT EARNED, GOODS SOLD AND DELIVERED, OR SERVICES
PERFORMED BEFORE THE PAYMENT IS MADE.

(B) INVESTMENTS PERMITTED.

NOTWITHSTANDING THE PROVISIONS OF TITLE 5, SUBTITLE 4
OF THIS ARTICLE OR OF ANY OTHER LAW, A BANKING INSTITUTION
MAY INVEST IN A BANK SERVICE CORPORATION IF:

(1)   THE TOTAL INVESTMENT IN THE CORPORATION BY
EACH BANK DOES NOT EXCEED 10 PERCENT OF THE BANK'S
UNIMPAIRED CAPITAL AND SURPLUS; AND

(2)   EXCEPT AS PROVIDED IN § 12-104 OF THIS
SUBTITLE, THE CAPITAL STOCK OF THE CORPORATION WILL BE OWNED
AT LEAST IN PART BY TWO OR MORE BANKS.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last clause
of the second paragraph of Art. 11, § 62A(a), the
third paragraph of Art. 11, § 62A(a), and the
first paragraph of Art. 11, § 62A(b).

In subsection (b) of this section, the present
reference to a provision of law "exclusively
relating to banks" is deleted as unnecessary and
potentially misleading. The reference apparently
was intended simply to identify the type of law
in which limitations or prohibitions on
affiliates are found, such as Title 5, Subtitle 4
of this article; however, it also misleadingly
implies that a limitation or prohibition in some
law not dealing "exclusively" with banks would
supersede this section. Deletion of this
reference avoids this implication.

In subsection (b) (1) of this section, the present
term "paid-in" is deleted as unnecessarily
limiting. Note that, as to a savings bank, the
reference to "its unimpaired capital and surplus"
presumably is intended to refer to its guaranty
fund; see Title 4, Subtitle 3 of this article.

As to subsection (b)(2) of this section, the
second paragraph of present Art. 11, § 62A(a)
refers to "two or more banks, each of which owns
a part of the capital stock of such corporations
{sic}". Subsection (b)(2) of this section is
revised to state expressly that at least a part
— but not all — of the capital stock need be
owned by these banks. This revision is supported
by an interpretive ruling of the Comptroller of
the Currency as to the investment of national
banking associations in bank service corporations
under the comparable federal law. That ruling
provides, in pertinent part: "... Nothing in the