1070 LAWS OF MARYLAND. [CH. 623

($100. 00) or less, or for the sum of one hundred dollars
($100. 00) in any case where the loan is in excess of said
amount.

An endorsed note, or a note not to exceed three hundred
dollars ($300. 00) secured by a duly recorded lien upon un-
encumbered real or leasehold property, or the assignment of
shares and deposits in the credit union, may be deemed
security by the credit committee within the meaning of this
sub-title. No member of the board of directors, credit com-
mittee or the supervisory committee shall directly or indirectly
borrow from or become security for a loan or advance made by
the corporation, in excess of the total of his shares and deposit,
or in excess of the total of paid in shares and deposits held
by him and his co-makers in said credit union, unless said loan
shall have been approved at a regularly called meeting of the
membership of the corporation by a majority vote of those
present and represented at said meeting, and unless the call
for the meeting contained notice of the fact that such loan
would be discussed at said meeting.

All officers and members of committees in any way know-
ingly permitting or participating in making a loan of funds of
a credit union to a non-member thereof shall be guilty of a
misdemeanor. The credit union shall have the right to re-
cover the amount of said illegal loans from the borrower or
from any officer or member of committees who knowingly per-
mitted or participated in the making thereof, or from them all
jointly. The supervisory committee shall appoint a substitute
to act on the credit committee in the place of any member, in
case such member makes application to borrow money from
the credit union or to become surety for any other member,
whose application for a loan is under consideration. A bor-
rower may repay the whole or any part of this loan on any
day on which the office of the corporation is open for business.

145. The board of directors of a credit union may declare
; a dividend, not in excess of six per cent, from so much of its
net profits at the close of any fiscal year as may be available
: after providing for expenses, interest and taxes accrued. Pro-
Tided, however, that no dividend shall/be declared until the
amount of net earnings shall have been transferred to the
Reserve Fund, as required by this Article. Any losses sus-
tained may be charged against the Reserve Fund, Surplus or
Undivided Earnings, and no dividends shall be declared if
the known losses existing at the close of any fiscal year exceed
the balance of the Reserve Fund, Surplus or Undivided Earn-
ings after the payment of said dividend. Dividends shall be
paid in the way and manner provided in the by-laws.