4548

LAWS OF MARYLAND

Ch. 826

credits, was transferred to Article 81, § 12G-11
of the Code.

As to the Corporation's exemption from the
Maryland Securities Act, see CA § 11-601.

Article - Financial Institutions

5-510. DEVELOPMENT CREDIT CORPORATION OF MARYLAND
MEMBERSHIP AUTHORIZED.

A BANKING INSTITUTION MAY:

(1)  BECOME AND PARTICIPATE AS A MEMBER OF THE
DEVELOPMENT CREDIT CORPORATION OF MARYLAND; OR

(2)  WITHDRAW FROM THE CORPORATION.

REVISOR'S NOTE: Ch._____, Acts of 1982, which

transferred to the Session Laws provisions that
-relate to the creation and operation of the
Development Credit Corporation, added this
section as a general reference to the authority
of a banking institution to become one of its
members and to withdraw.

Article 81 - Revenue and Taxes

[427. ] 12G-11.

(a)  The [corporation] DEVELOPMENT CREDIT CORPORATION
OF MARYLAND shall not be liable for the tax imposed under
the subtitle "Income Tax" of [Article 81 of the -Annotated
Code of Maryland] THIS ARTICLE; and the securities,
[evidence] EVIDENCES of indebtedness and shares of the
capital stock issued by the [corporation] CORPORATION, their
transfer, and income therefrom, and deposits of financial
institutions to the extent invested therein, shall at all
times be free from taxation within this State.

(b)  Any stockholder, member or other holder of any
securities, evidences of indebtedness, or shares of the
capital stock of the [corporation] DEVELOPMENT. CREDIT
CORPORATION OF MARYLAND who realizes a loss from the sale,
redemption, or other disposition of any securities,
evidences of indebtedness, or shares of the capital stock of
the [corporation] CORPORATION, including any such loss
realized on a partial or complete liquidation of the
[corporation] CORPORATION, and who is not entitled to deduct
such loss in computing any of such stockholder's, member's,
or other holder's taxes to the State, shall be entitled to
credit against any taxes subsequently becoming due to the
State from such stockholder, member, or other holder, a
percentage of such loss equivalent to the highest rate of
tax assessed against income for the year in which the loss
occurs upon mercantile and business corporations.