4748

LAWS OF MARYLAND

Ch. 868

(iii) A corporation in which the director
holds any interest, unless an officer or employee of the
commercial bank is an officer or owns the majority interest
in that corporation.

(c)  (1) A loan to a director, officer, or employee of
a commercial bank may be made only if the loan has been
approved by a resolution adopted at and recorded in the
minutes of a meeting of:

(i) The board of directors of the
commercial bank; or

(ii) The executive committee of the
commercial bank, if that committee is authorized to make
loans.

(2) If a loan is approved by an executive
committee, the loan approval shall be reported to the board
of directors at its next meeting.

(d)  (1) A loan made under this section shall be
reviewed every 6 months by the Board of Directors.

(2) The loan may not be renewed or extended
unless the renewal or extension has been approved by a
resolution adopted at a meeting of the board of directors
and recorded in the minutes of the meeting.

(e)  All loans to a director, officer, or employee of a
commercial bank are subject to the limitations imposed by §
3-601 of this subtitle.]

[4-602.

A savings bank may not lend money to any of its
directors, officers, or employees.]

5-511.

(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
BANKING INSTITUTION:

(1)  ANY DIRECTOR, OFFICER, OR EMPLOYEE OF THE
BANKING INSTITUTION;

(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.