226 LAWS OF MARYLAND. [CH. 139

agement of the affairs, funds and records of the corporation
and shall meet as often as may be necessary. It shall be the
special duty of the directors: (1) To act upon all appli-
cations for membership and the expulsion of members; to fix
the amount of the surety bond which shall be required of each
officer having the custody of funds. (2) To determine
interest rates and fix the maximum number of shares which
may be held by and the maximum amount which may be
loaned to any one member; to declare dividends and to recom-
mend amendments to the by-laws. (3) To fill vacancies
in the board of directors or in the credit committee until the
election and qualification of successors; to have charge of the
investment of funds of the corporation except loans to mem-
bers and to perform such other duties as the members may
from time to time authorize.

(b) The Board of Directors, with the approval of the State
Bank Commissioner, may within seven days after the receipt
of a report or recommendation from the Supervisory Com-
mittee concerning the suspension of any member of the Credit
Committee, the Credit Committee, any member of the Board
of Directors, or any officer elected by the Board, give notice
to the members of a special meeting to act on such recom-
mendation. The Board of Directors may call a meeting of the
members to take action upon any practice of the corporation
which, in the opinion of the Supervisory Committee and con-
curred in by the State Bank Commissioner, is considered un-
safe and unauthorized.

(c) The officers elected by the Board of Directors may
receive such compensation as the members may authorize.
The members of the Board of Directors and members of the
Credit and Supervisory Committees may receive such com-
pensation as the members may authorize subject to the final
approval of the State Bank Commissioner.

137. The Supervisory Committee shall inspect the securi-
ties, cash and accounts of the corporation. It shall make at
least a semi-annual audit of the affairs of the corporation
and make a full report thereon to the directors. The report
for the period ending December 31 shall be read at the annual
meeting of the membership and be preserved with the records
of the corporation. The audit procedure of the Supervisory
Committee shall embrace the following accounting principles
to determine:

A. That the cash reserve was found to be sufficient.
B. That the check book stubs were examined and the bal-
ance found to be correct.