448 LAWS OF MARYLAND. [CH. 197

shall then declare a dividend upon the paid-up capital stock
at a rate per annum not to exceed eight per cent; provided that
no such dividend upon common stock shall be cumulative. The
directors may then set aside not to exceed five per cent of the
remaining net profits as an educational fund to be used in
teaching cooperation. The directors may then grant a bonus
to employees who are in the employ of the association at the
time of the apportionment of profits, which bonus shall be based
in amount upon the amount of compensation received by said
employees during the year at a rate not to exceed the rate of
patronage dividends hereinafter described. The directors shall
distribute all remaining net profits by uniform dividend to
members of the association, based in amount upon the volume
of business conducted by such members with the association;
provided, that the association may distribute to patrons of the
association who are not members, bonuses based in amount upon
the volume of business transacted by such non-members re-
spectively with the association at a rate not to exceed the rate
of patronage dividend herein referred to; provided further that
any such bonus to a non-stockholder may be declared in the
form of capital stock, until the amount of such dividends equals
the par value of one share of the association's stock, dividends
thereafter to such patron being paid in the same manner as
dividends to all stockholders; provided further that such a bonus
to a non-stockholder, if it is less than the par value of one
share, shall be credited to the non-stockholders capital stock ac-
count during the first year and the second year but shall revert
to the reserve fund, if, after two years, an amount less than the
par value of one share has accumulated.

(b. ) The stockholders at any regular or special meeting,
called legally, may instruct the directors as to what method of
apportionment of net profits to follow under the provision of
this section, in so far as these provisions confer discretion
upon the directors.

(c. ) The directors of any association organized without
capital stock under this Act shall provide annually for the
distribution of the net profits, if any, as follows:

(d. ) After the expenses of the association have been paid
and a proper reserve has been set aside to cover depreciation
of the property of the association and for contingent ex-
penses, and to establish a reasonable reserve, the directors sub-
ject to the approval of the members, as provided in sub section
(e) of this section, may set aside such sums as they deem desir-