146 ARTICLE 11.

association or any member thereof. In computing the total liabilities of
any corporation to a bank or trust company there shall be included all
loans made for the the benefit of the corporation. A loan shall be deemed
to be made for the benefit of a corporation or co-partnership to the extent
that the proceeds of such loan are transferred to the corporation, copart-
nership or association. In reckoning the liability of any borrower here-
under there shall not be included its readily marketable bonds or like
obligations held by a bank or trust company as an investment; nor shall
said thirty per cent. (30%) limit apply to any loan made to the State
of Maryland or to any county or municipality thereof maturing in less
than one year. Provided, however, that the limitations provided by this
section shall not apply to any loan which does not exceed the sum of
Thirty-five Hundred Dollars ($3, 500. 00), unless such loan exceeds 20%
of the surplus and paid-in capital; and provided further that the limita-
tions of this section shall not apply to any liabilities lawfully incurred
prior to Dec. 15, 1933. For the purposes of this section the term "Bank"
shall include savings institutions having a capital stock.

An. Code, 1924, sec. 68. 1912, sec. 65. 1910, ch. 219, sec. 64 (p. 28).
1912, ch. 194, sec. 64. 1933, ch. 348.

68. No officer or employee of any bank or trust company, other than
a director, and no corporation in which such officer or employee is an
officer or the owner of a majority interest, and no partnership of which
such an officer or employee is a member, shall borrow any of the funds
of such bank or trust company, directly or indirectly, without the ap-
proval of the Board of Directors by resolution adopted at a meeting
thereof, and recorded in the minutes before making such loan. Loans,
made to directors of any bank or trust company for their personal account
shall be subject to the aforegoing restrictions; but where any director is
actually engaged in business, loans may be made to him or to any partner-
ship of which he is a member or corporation in which he is an officer ra-
the owner of a majority or less than a majority interest, for use in such
business without complying with the foregoing provisions. Loans to
officers, directors or employees made under the provisions of this section
shall be reviewed every six months for further action by the Board of
Directors, and if it shall be determined to renew or extend any such loan,
such action shall be recorded in the minutes before making such renewal
or extension. In case any bank or trust company maintains a branch it
shall be a sufficient compliance with the provisions of this section requir-
ing approval of the Board of Directors if the advisory board of said
branch approves of any loan to officers, directors or employees by resolu-
tion adopted at a meeting of such advisory board, and recorded in the
minutes before making such loan and it shall likewise be a sufficient com-
pliance with said provisions of this section in case the executive committee
of any bank or trust company is authorized to make loans, for the said
loan to be approved by a resolution adopted at a meeting of said executive
committee and recorded in its minutes before making such loan, provided,