HARRY HUGHES, Governor

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(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 BANKING INSTITUTION,
UNLESS THE DIRECTOR ALSO IS AN OFFICER OR EMPLOYEE OF THE

BANKING INSTITUTION;

(II)  A PARTNERSHIP OF WHICH THE DIRECTOR
IS A MEMBER, UNLESS AN OFFICER OR EMPLOYEE OF THE BANKING
INSTITUTION ALSO IS A MEMBER OF THAT PARTNERSHIP; OR

(III)  A CORPORATION IN WHICH THE DIRECTOR
HOLDS ANY INTEREST, UNLESS AN OFFICER OR EMPLOYEE OF THE
BANKING INSTITUTION IS AN OFFICER OR OWNS THE MAJORITY
INTEREST IN THAT CORPORATION.

(C) (1) A LOAN TO A DIRECTOR, OFFICER, OR EMPLOYEE OF
A BANKING INSTITUTION 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 BANKING
INSTITUTION; OR

(II)  THE EXECUTIVE COMMITTEE OF THE
BANKING INSTITUTION, 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
BANKING INSTITUTION ARE SUBJECT TO THE LIMITATIONS IMPOSED
BY § 3-601 OF THIS ARTICLE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.