22 LAWS OF MARYLAND [CH. 1

160V. BRANCH OFFICES.

(a) Approval by Director. No domestic federally or state
chartered association shall establish, maintain or relocate any branch
office without filing an application therefor with the Director and
securing his prior approval thereof. Any application for the estab-
lishment, maintenance or relocation of a branch office shall state: (1)
the proposed location thereof, (2) the need therefor, (3) the functions
to be performed therein, (4) the estimated annual expense thereof,
and (5) the mode of payment therefor. Such application shall be
approved by the Director if he finds that the proposed establishment,
maintenance or relocation of a branch office will promote the public
interest, convenience and advantage and whether such branch office
will be efficiently operated in accordance with the policy of this sub-
title. The Director shall publish the fact that such an application has
been filed for at least two (2) successive weeks after filing in a
newspaper of general circulation in the city, town or county in which
the proposed branch office is to be located, and shall give such other
notice as may be desirable. Any financial institution in the area in
which a branch office is proposed to be located shall have the right
to protest the proposed approval by the Director and shall have the
right to be heard on such protest.

(b) Appeal. Any applicant or protestant aggrieved by any action
or non-action of the Director under this Section may appeal there-
from in accordance with the appeal provisions of Section 16OH re-
lating to orders.

160W. PROHIBITED TRANSACTIONS.

(a) Loan to officer, director or employee. It shall be unlawful for
any association to make a loan to any of its officers, directors or em-
ployees, or to any corporation or business in which any officer,
director or employee, or any member of the family of such officer,
director or employee, owns an interest of ten per cent (10%) or more,
except upon the security of the home or free share accounts in the
association of such officer, director or employee, provided that any
such loan secured by any free share accounts shall not exceed ninety
per cent (90%) of the withdrawal value thereof.

(b) Exception. An association may make a loan prohibited by
sub-section (a) hereof provided the loan is: (1) approved by a two-
thirds (2/3) vote of the board of directors, any interested director
taking no part in such vote, and (2) appraised by a disinterested
appraiser appointed by the Director and (S) approved by said Di-
rector.

(e) Purchase at less than face value. It shall be unlawful for any
officer, director or employee of an association to have any interest,
direct or indirect, in the purchase at less than its face value of any
free share account or evidence thereof issued by such association.

160X. WITHDRAWAL.

(a) Procedure; limitation on withdrawal. Any free shareholder
may at any time present a written application for withdrawal of all
or any part of his free share accounts. No member shall have on file