24 LAWS OF MARYLAND [CH. 1

160Y. DEFINITE RATE SECURITIES FORBIDDEN.

No association shall issue, sell, negotiate, or advertise for sale
either to members or the public any type of investment security other
than free share accounts, guaranty stock "Christmas" and/or "vaca-
tion club" funds in account with it. No association shall agree to
pay, on any free share account, a rate or amount, in dividends or
other distributions, which is fixed. This Section shall not be con-
strued, however, to exclude the power of an association to borrow
money from banks, or other similar borrowings.

160Z. INVESTMENTS OF ASSOCIATIONS.

(a) Power to invest. In addition to the investments permitted
to be made by associations organized under the laws of this State,
pursuant to Section 150 of this Article, every association shall have
power to invest:

(1) in such real estate as may be or reasonably anticipated to be
necessary or convenient for the transaction of its business, and this
shall include the power to derive revenue, by rental or otherwise,
from any portion of such real estate;

(2) in real estate purchased at auction sale, public or private,
judicial or otherwise, upon which the association has lien or claim,
legal or equitable;

(3) in real estate accepted by the association in satisfaction of
any obligation;

(4) in real estate acquired by the association in exchange for real
estate owned by the association;

(5) in real estate acquired by the association in connection with
salvaging the value of property owned by the association;

(6) in chattels and equipment necessary to conduct its business;

(7) by making loans to members of cooperative housing projects
secured by the assignment of their interest or equity in a unit of
such project, notwithstanding the fact that such project as a whole
may be subject to a prior lien, and notwithstanding any other pro-
visions of this Act;

(8) with banks insured by the Federal Deposit Insurance Corpora-
tion.

(b) Title to and location of property. Title to all real estate shall
be taken and held in the name of the association. The real or lease-
hold property securing any mortgage authorized by Section 150 of
this Article shall be situate in this State, or without this State if
such property is within a fifty (50) mile radius of the principal
Maryland office of the association.

(e) Second mortgages. Any mortgage held by an association shall
be a first lien upon such real or leasehold property except that such
mortgage may be a second lien if the first lien on said property is
held by the association.

160AA. PROMOTIONAL ACTIVITIES PROHIBITED.

After the effective date of this Section, an association shall not
give for the opening of, maintaining of, or increasing the amount
of, any account, any give-away that has a monetary value in excess