PARRIS N. GLENDENING, Governor                             Ch. 326

(2) The investment of the commercial bank in personal property does not
exceed:

(i) For any one customer, 10 percent of the unimpaired capital and
surplus of the commercial bank; and                                                               

(ii) For all of its customers, the total of its unimpaired capital and
surplus.                                                                                                           

3-607.

(c) (1) A commercial bank shall have at all times a reserve equal to at least 15
percent of its demand deposits.                                                                       

(2) The board of directors of a commercial bank by resolution shall direct
the commercial bank to keep the demand deposit reserve required by this section in:

(i) Cash on hand;

(ii) Demand deposits in a bank of good standing in any state; or

(iii) As to 5 percent of its demand deposits, on approval of the [ Bank]
Commissioner:

1.       Registered or coupon bonds; or

2.       General obligations of or obligations guaranteed by the
United States government, an agency of the United States government, this State, or any
political subdivision.

(e) (1) If the [Bank] Commissioner, with the advice of the Banking Board,
determines that a change in the demand deposit reserve or in the time deposit reserve
requirements is advisable to maintain sound banking practices or to prevent injurious
credit expansion or contraction, the [ Bank] Commissioner may change the requirements
as provided in this subsection.

(2)     Subject to paragraph (3) of this subsection, the [Bank] Commissioner
may adopt rules or regulations to change the requirements as to reserves for commercial
banks.

(3)     The rules and regulations may:

(i) Increase the demand deposit reserve to an amount equal to not
more than 30 percent of those deposits;

(ii) Increase the time deposit reserve to an amount equal to not more
than 6 percent of those deposits;

(iii) Decrease the demand deposit reserve to an amount equal to not
less than 15 percent of those deposits;

(iv) Decrease the time deposit reserve to an amount equal to not less
than 3 percent of those deposits; and

(v) Notwithstanding items (i) through (iv) of this paragraph, increase
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