A commercial bank may not make any loan the proceeds of which are to be used to pay for any part of a subscription to its capital stock unless the loan is secured adequately by other collateral.
Structure Maryland Statutes
Title 3 - Banking Institutions -- Commercial Banks
Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders
Section 3-301 - Capital Stock in General
Section 3-302 - Preferred Stock
Section 3-303 - Loans for Stock Subscription
Section 3-304 - Loans on and Acquisitions of Own Stock Prohibited
Section 3-305 - Reduction of Capital
Section 3-306 - Maintenance of Surplus; Losses
Section 3-307 - Cash Dividends
Section 3-308 - Stock Dividends
Section 3-310 - Annual Meeting of Stockholders
Section 3-311 - Oath of Stockholder Before Voting
Section 3-312 - Debt Instruments
Section 3-314 - Approval of Commissioner of Certain Stock Transactions