HARRY HUGHES, Governor

4747

Annotated Code of Maryland

(1980 Volume and 1981 Supplement)

BY adding to

Article - Financial Institutions

Section 5-511

Annotated Code of Maryland

(1980 Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article - Financial Institutions

[3-602.

(a)  Unless the loan is approved or exempted from
approval as provided in this section, the following persons
may not borrow, directly or indirectly, any money from a
commercial bank:

(1)  Any director, officer, or employee of the
commercial bank;

(2)  Any partnership of which the director,
officer, or employee is a member; or

(3)  Any corporation in which the director,
officer, or employee is an officer or owns the majority
interest.

(b) (1) In this subsection, "commercial loan" means a
loan that is made:

(i) Solely to acquire or carry on a
business or commercial enterprise; or

(ii) To any business or commercial
organization.

(2) This section does not require approval of a
commercial loan that is made to:

(i) A director of the commercial bank,
unless the director also is an officer or employee of the
commercial bank;

(ii) A partnership of which the director
is a member, unless an officer or employee of the commercial
bank also is a member of that partnership; or