HARRY HUGHES, Governor

907

6-208. LOANS TO SOUTH AFRICA.

(A)  SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO A LOAN THAT IS OUTSTANDING ON
DECEMBER 31, 1984.

(B)  CERTIFICATION ON LOANS.

THE TREASURER MAY NOT USE A FINANCIAL INSTITUTION AS A
DEPOSITARY UNLESS THE FINANCIAL INSTITUTION CERTIFIES, IN
WRITING, THAT IT HAS NO DIRECT LOANS AND NO FOREKNOWLEDGE OF ANY
INDIRECT LOANS OUTSTANDING TO A GOVERNMENTAL UNIT OR NATIONAL
CORPORATION OF THE REPUBLIC OF SOUTH AFRICA.

(C)  EXCLUSION.

IF DIRECT OR INDIRECT LOANS DESCRIBED IN SUBSECTION (B) OF
THIS SECTION ARE MADE BY A FOREIGN OR OUT-OF-STATE FINANCIAL
INSTITUTION WITHOUT THE PARTICIPATION OF A SUBSIDIARY OR
AFFILIATED CORPORATION, SUBSECTION (B) OF THIS SECTION DOES NOT
APPLY TO THE SUBSIDIARY OR AFFILIATED CORPORATION.

REVISOR'S NOTE: Subsection (a) of this section is new
language added to reflect Section 2 of Ch. 775, Acts
of 1984, which enacted former Art. 95, § 21(b) and
(c).

Subsections (b) and (c) of this section formerly
appeared as Art. 95, § 21(b) and (c).

In subsection (b) of this section, the defined term
"financial institution" is substituted for the former
reference to a "bank, trust company, savings and loan
association, or building and loan association", for
brevity and conformity to the balance of this
subtitle.

In subsection (c) of this section, the word
"described" is substituted for the former word
"prohibited", since the referenced subsection (b) of
this section does not prohibit the making of these
loans.

The Commission to Revise the Annotated Code notes, for
the consideration of the General Assembly, that former
Art. 95, § 21(c) stated, in part, that, if a loan is
made without participation by a financial institution,
"this section" does not apply to the institution. In
the revision of former Art. 95, § 21(c) in subsection
(c) of this section, the narrower cross-reference to
"subsection (b) of this section" is substituted for
the former, seemingly overbroad cross-reference to
"this section". The substituted language, which
refers to the provisions derived from former § 21(b),