Ch. 4

LAWS OF MARYLAND

actions arising from events or omissions occurring on or after

the effective date of this Act, and that, except as provided in

Section 3 of this Act, the amendments to § 2-418 of the

Corporations and Associations Article added by this Act shall

apply only to indemnification granted on or after the effective

date of this Act, whether the events, omissions, or proceedings

underlying the indemnification occurred before or after the
effective date of this Act.

SECTION 3. AND BE IT FURTHER ENACTED, That with respect to
a banking institution, credit union, or savings and loan
association described in this Act, or a subsidiary of a banking
institution, credit union, or savings and loan association
described in this Act, the amendments to Section 2-418 of the
Corporations and Associations Article added by this Act shall
apply only to indemnification granted on or after the effective
date of this Act for events, omissions or proceedings occurring
after the effective date of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act is an
emergency measure, is necessary for the immediate preservation of
the public health and safety, has been passed by a yea and nay
vote supported by three-fifths of all the members elected to each
of the two Houses of the General Assembly, and shall take effect
from the date it is enacted.

Approved February 18, 1988.

CHAPTER 4

(Senate Bill 223)

AN ACT concerning

Corporations and Associations -
Standard of Liability and Indemnification

FOR the purpose of authorizing a corporate charter to alter the
standard for imposing liability for damages on corporate
directors and officers; providing for certain exceptions;
modifying the presumptions applicable to, and the procedures
for establishing the basis for, indemnification and
advancement of expenses to corporate directors and certain
other persons; providing for the application and
construction of certain provisions of this Act; generally
relating to the standards for liability for corporate
directors and officers and indemnification of corporate

- 744 -