626                              Laws of Maryland                      [Ch. 483

"Banks and Trust Companies", sub-title "Savings Institutions",
authorizing any mutual savings institution to borrow money for
certain purposes and generally relating to the power and pro-
cedure for such borrowing.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 41 of Article 11 of the Annotated Code of Maryland
(1957 Edition), title "Banks and Trust Companies", sub-title "Sav-
ings Institutions", be and it is hereby repealed and re-enacted, with
amendments, to read as follows:

41. May receive and invest deposits; no loans to officers, etc.;
withdrawals; safety deposit vaults.

(a)  Every savings institution existing under the laws of the State
of Maryland, or which may hereafter be incorporated, transacting
strictly a savings bank business, shall be capable of receiving from
any person or persons, or bodies corporate or politic, any deposit of
money, which shall be invested or loaned out on good security, in the
discretion of the directors; provided, no part of the funds of such
corporation shall be loaned to any officer, director or employee
thereof. The deposits in any savings institution may be withdrawn
at such time and in such manner as its bylaws may permit, but such
institution may at any time require a depositor to give a notice, not
exceeding ninety days, of his intention to withdraw the whole or any
part of his deposit.

(b)   Every such savings institution shall have the power to con-
struct, own and let for hire, vaults, safes and like receptacles for the
safekeeping and storage of securities and valuables, and to re-
ceive for deposit securities or valuables upon such terms and con-
ditions as may be agreed upon between such institutions and persons,
firms or corporations desiring to rent said vaults, safes and like
receptacles, or to deposit securities or other valuables with said
institutions.

(c)  Any mutual savings institution, by vote of its Board of Di-
rectors may borrow money for the purpose of repaying its depositors,
or for such other purposes as said Board may deem to be in the
best interests of such institutions. Any borrowing made under the
authority of this section, shall be for periods aggregating not more
than one year, subject, however, to renewal for any unpaid bal-
ance after such year with the written approval of the Banking
Commissioner. Except with the prior approval of the Banking
Commissioner, the aggregate amount of all borrowing outstanding
at any one time for purposes other than repaying its depositors,
shall not exceed five percent of the deposits of such institution as
shown by its books at the time of such borrowing. Such institutions
may pledge its assets as security for any sum borrowed under the
authority of this section. A copy of the resolution of the Board of
Directors authorizing such borrowings shall be forwarded forthwith
to the Banking Commissioner.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1959.

Approved April 8, 1959.