4560

LAWS OF MARYLAND

Ch. 826

other evidences of indebtedness, issued on or after June 1,
1966, by Development Credit Corporation of Maryland as
authorized by subsection (b) (1) of said § 414; provided,
however, that the faith and credit of the State of Maryland
may not be pledged to secure more than three million dollars
($3,000,000.00) in principal amount of such indebtedness
outstanding at any one time. Within the limits of this
maximum amount, the Board of Public Works, upon approving a
formal request therefor from Development Credit Corporation
of Maryland, shall provide for pledging the faith and credit
of the State of Maryland for such bonds, debentures, notes
or other evidences of indebtedness.]

No officer or official of the State of Maryland,
whether elected or appointed, shall be either an officer or
a director of such corporation, except that any member of
the Maryland Industrial Development Financing Authority may
be elected a member of the board of directors of said
corporation.

[426A.] 16. Supervision by Bank Commissioner.

The Development Credit Corporation of Maryland shall be
fully subject to supervision by the Bank Commissioner of
Maryland under the appropriate provisions of [Article 11]
THE FINANCIAL INSTITUTIONS ARTICLE of the Annotated Code of
Maryland. For purposes of executive organization only, the
Corporation shall be a part of the Department of Economic
and Community Development.

[428.] 17. Rate of interest.

Notwithstanding any other provisions of the law to the
contrary, the corporation is authorized to charge interest
on loans at a rate of not more than four and one-half
percent in excess of the rate of interest determined by the
board of directors to be the prime rate prevailing from time
to time (at the time of making, extending or renewing any
such loan), in the City of Baltimore on unsecured commercial
loans.

It shall be permissible for such maximum interest rate
to be fixed at the time of the making, extending or renewing
of any loan or for such maximum interest rate to fluctuate
up and down with the prime rate of interest as so determined
by the board of directors.

If a fluctuating interest rate is charged on any loan,
such rate shall first be determined oh the date the loan is
made and shall thereafter be redetermined on the first day
of each January, April, July and October, whereupon the
interest rate shall be appropriately increased or decreased
to reflect the change, if any, in said prime rate of
interest as so redetermined for the quarter commencing on
the date of such redetermination of the interest rate.