HARRY HUGHES, Governor

957

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 11 - Banks and Trust Companies

108G.

(a) [Whenever] SIXTY DAYS BEFORE (1) a change occurs
[or is about to occur] in the outstanding voting stock of
any State bank [or], trust company OR BANK HOLDING COMPANY
IN THIS STATE which will result in a change in the control
of the A BANKING institution OR BANK HOLDING COMPANY, or (2)
any sales or transfers PURCHASES by or to any one person,
PERSONS, corporation or other legal entity WHICH WILL GIVE
THE PURCHASER CONTROL of the aggregate of twenty-five
percent (25%) 25 PERCENT or more of the voting stock of any
State bank or trust company [is about to be consummated or
has been consummated], the president or other chief
executive officer of such institution PURCHASER [immediately
upon obtaining knowledge of such change in the control of
the institution or such contemplated or consummated sale or
transfer of such stock] shall report such facts to the Bank
Commissioner REQUEST PRIOR APPROVAL OF THE BANK COMMISSIONER
TO MAKE THE PURCHASE. THE BANK COMMISSIONER MAY DENY THE
OWNERSHIP CHANGES IF THE ACQUISITION IS REGARDED AS
ANTICOMPETITIVE OR THREATENING TO THE SAFETY OR SOUNDNESS OF
THE INSTITUTION. VOTING STOCK ACQUIRED IN VIOLATION HERE0F
OF THIS SECTION MAY NOT BE VOTED FOR 5 YEARS.

Whenever application is made for a loan from any State
bank or trust company or a loan is made by any such
institution, which loan is, or is to be, secured by
twenty-five percent (25%) or more of the voting stock of any
State bank or trust company, the president or other chief
executive officer of the institution to which the
application is made or which makes the loan shall report
such fact to the Bank Commissioner, except when the
applicant or borrower has been the owner of record of the
stock for a period of one year or more, or the stock is of a
newly organized State bank or trust company prior to its
opening.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 14, 1979.

CHAPTER 295
(Senate Bill 983)