14 LAWS OF MARYLAND [CH. 1

appointed as provided herein shall remain in office and the employees
of such association shall remain in their respective positions; how-
ever, by order of the appointing court, upon good cause shown, the
conservator may remove any director, officer, or employee.

(e) Operation of association. By order of the appointing court,
while an association is in the charge of a conservator, members of
such association shall continue to make payments to the association
in accordance with the terms and conditions of their contracts, and
the conservator may permit free share account holders to withdraw
their accounts from the association pursuant to the provisions of such
order. The conservator shall have power to accept free share accounts
and additions to free share accounts, but^ any such amounts received
by the conservator may be segregated; if so ordered, such amounts
shall not be subject to offset and shall not be used to liquidate any
indebtedness of such association existing at the time the conservator
was appointed for it or any subsequent indebtedness incurred for the
purpose of liquidating the indebtedness of any such association exist-
ing at the time such conservator was appointed. All expenses of the
association during such conservatorship shall be paid by the asso-
ciation.

16OL. RECEIVERSHIP.

(a) Appointment of receiver. If irregularities complained of in
a final order are not corrected, or if any irregularities complained
of in a petition for the appointment of a conservator are not
corrected, or in the case of any emergency, the Director, if in his
judgment the public interest requires, acting through the Attorney
General, may apply to an equity court for the city or county where
the association has its principal Maryland office for the appoint-
ment of a receiver, who may be the Director. Such court is authorized
to appoint a receiver if it finds that such association: (1) is in an
impaired or insolvent condition; or (2) is in substantial violation
of any valid and applicable law or regulation; or (S) is concealing
any of its assets, books or records; or (4) is conducting an unsafe
and unsound operation.

(b) Procedure. The procedure in such receivership action, shall
be in all other respects in accordance with the practice in such court,
including all rights of appeal and review provided by law.

160M. INCORPORATION AND ORGANIZATION.

(a) Selection of chairman of incorporators; subscriptions required;
general reserve fund. (1) Any number of natural persons, not less
than five (5), who shall be at least twenty-one (21) years of age,
citizens of the United States and bona fide residents of this State,
may hereafter associate as incorporators to establish an association
under this Article upon the terms and conditions and subject to the
liabilities prescribed herein. The incorporators shall appoint one of
their number as chairman of the incorporators. The incorporators
shall pay in cash to such chairman as subscriptions to free share ac-
counts of the proposed association, including that part of the original
subscription paid by such chairman, an aggregate amount, determined
by the location of the principal office of the proposed association,
as follows: a minimum sum of ten thousand dollars ($10, 000. 00) in
cities, towns or villages having up to fifteen thousand (15, 000) in-