Section 3-304 - Loans on and acquisitions of own stock prohibited. - Maryland Statutes

§ 3-304. Loans on and acquisitions of own stock prohibited.
 

(a)  General rule.- Except as necessary to prevent a loss on a loan previously made in good faith, a commercial bank may not: 

(1) Make any loan secured by any of its outstanding capital stock; or 

(2) Buy or hold any of its outstanding capital stock. 

(b)  Required disposition.- If a commercial bank buys or holds any of its outstanding capital stock, the commercial bank shall sell the stock at public or private sale within: 

(1) 1 year after the date of acquisition; or 

(2) Any longer period that the Commissioner authorizes. 
 

[An. Code 1957, art. 11, § 80; 1980, ch. 33, § 2; 1996, ch. 326, § 2.]