4558

LAWS OF MARYLAND

Ch. 826

At least a majority of the capital stock of such
corporation shall at all times be held by residents of the
State or by persons, firms or corporations engaged in doing
business therein.

[422.] 11. Participation.

Notwithstanding any rule at common law or any provision
of any general or special law:

(1)  All domestic corporations organized for the
purpose of carrying on business within this State, without
limitation, are hereby authorized to acquire, purchase,
hold, sell, assign, transfer, mortgage, pledge or otherwise
dispose of any bonds, securities or other evidences of
indebtedness created by, or the shares of the capital stock
of, the corporation, and while owners of said stock to
exercise all the rights, powers and privileges of ownership,
including the right to vote thereon, all without the
approval of any regulatory authority of the State of
Maryland;

(2)  All financial institutions, as defined in [§
419] § 8 OF THIS SUBTITLE are hereby authorized to become
members of the corporation and to make loans to the
corporation as provided herein;

(3)  A financial institution, as defined in [ §
419] § 8 OF THIS SUBTITLE, which does not become a member of
the corporation shall not be permitted to acquire any shares
of the capital stock of the corporation; and

(4)  Each financial institution which becomes a
member of the corporation is hereby authorized to acquire,
purchase, hold, sell, assign, transfer, mortgage, pledge, or
otherwise dispose of, any bonds, securities or other
evidences of indebtedness created by, or the shares of the
capital stock of the corporation, and while owners of said
stock to exercise all the rights, powers and privileges of
ownership, including the right to vote thereon, all without
the approval of any regulatory authority of the State;
provided, that the amount of capital stock of the
corporation which may be acquired by any member pursuant to
the authority granted herein shall not exceed ten percent of
the loan limit (based on the formula therefor provided in [§
420(a)] § 9(A) OF THIS SUBTITLE SUBTITLE) of such member.
The amount of capital stock of the corporation which any
member is authorized to acquire pursuant to the authority
granted herein is in addition to the amount of capital stock
in corporations which such member may otherwise be
authorized to acquire.

[423.] 12. Unissued securities.