§ 3-304
89 words·~1 min read·
/md/financial-institutions/3-304A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–304.
(a)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)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.