412 ARTICLE 11

As to the taxation of savings banks, see art. 81, sec. 94.
Cf. secs. 32 and 54; also art. 23, sec. 3.

As to deposits in name of fiduciary and in name of principal and in fiduciary's
personal account, see art. 37A, sec. 7, et seq.
As to franchise tax on savings banks deposits, see art. 81, sec. 94.

An. Code, 1924, sec. 32. 1912, sec. 32. 1910, ch. 219, sec. 31 (p. 15). 1931, ch. 294, sec. 32.

1935, ch. 498.

41. No savings institution or savings bank hereafter incorporated shall
have any capital stock, but shall be a mutual association. With the
approval of the Bank Commissioner, any mutual savings institution shall
have the right and authority to establish in the same city, town or village
and maintain branches where its guarantee fund equals the minimum
requirement as to capital of State banks in the same locality.
Secs. 41-48 cited in Zimmerman v. Coblentz, 170 Md. 475.

An. Code, 1924, sec. 33. 1912, sec. 33. 1910, ch. 219, sec. 32 (p. 16). 1920, ch. 91, sec. 33.

42. 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 direc-
tors; 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institution may be withdrawn at such time and in such manner as its by-
laws 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.

Every such savings institution shall have the power to construct, own and
let for hire, vaults, safes and like receptacles for the safe keeping and
storage of securities and valuables, and to receive for deposit securities or
valuables upon such terms and conditions 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.

An. Code, 1924, sec. 34. 1912, sec. 34. 1910, ch. 219, sec. 33 (p. 16).

43. No savings institution shall, out of its net earnings, in the course
of any year, declare or pay any dividend or interest to its depositors, unless
there shall be reserved and set aside, as a guarantee fund, an amount
equivalent to at least one-eighth of 1 per cent, per annum on the whole
amount of deposits then held, until such guarantee fund shall amount to
at least 3 per cent, on the whole amount of deposits. The guarantee fund
shall at all times be maintained for the protection of depositors, and shall
never be impaired by the payment of any interest or dividends.

An. Code, 1924, sec. 35. 1912, sec. 35. 1910, ch. 219, sec. 34 (p. 16). 1931, ch. 294, sec. 36.

44. The dividend or interest of the depositors in such savings institu-
tion shall be declared and paid from the net income or profits after de-
ducting expenses for management, losses, necessary credits to premium
account, taxes, and the amount reserved for guarantee fund, but this
dividend shall not exceed such net income or profit remaining after the
above deductions, nor shall it at any time impair the guarantee fund of
3 per cent, provided for. In ascertaining the profits or earnings, no