J. MILLARD TAWES, GOVERNOR 7

be subject to the provisions of this sub-title and shall possess all of
the rights, powers, privileges, immunities and exemptions granted by
this Article to associations operating hereunder and to the mem-
bers thereof.

160C. PROHIBITIONS.

(a) Who may transact business. No person or group of persons
except (1) an association duly incorporated under Sections 160A
through 160KK of this Article, or (2) an association duly in-
corporated prior to the enactment of the aforesaid Sections and
conducted in conformity with the aforesaid Sections, or (3) a Federal
association, or (4) a foreign association duly authorized to do business
within this^ State and complying and conducting its business in con-
formity with the aforesaid Sections, shall transact business within
the scope of this sub-title or do business under any name or title, or
circulate or use any advertising or make any representation or give
any information to any person which indicates or reasonably implies
the operation of a building, savings and loan or homestead business.

(b) Injunction. Upon application of the Director, a court of
competent jurisdiction may issue an injunction to restrain any per-
son or association from violating or continuing to violate any of the
provisions of sub-section (a) hereof.

(e) Fine. In addition to the remedy provided in sub-section (b)
hereof, any person or association violating any of the provisions of
sub-section (a) hereof shall be deemed guilty of a misdemeanor and
upon conviction shall be subject to a fine of not more than one
thousand dollars ($1, 000. 00) for each offense.

160D. EFFECT ON EXISTING BUILDING OR HOMESTEAD
ASSOCIATIONS.

(a) Operation of existing associations; effect on prior obligations.
All associations shall henceforth be operated and regulated in ac-
cordance with the provisions of Sections 160A through 160KK of
this Article, provided, however, that the loan obligations and
mortgages entered into by or on behalf of any association prior to
the effective date of said Sections shall not be declared invalid by
reason of the fact that such obligations and mortgages, or any of
them, conflict with the terms and provisions of said Sections.

(b) Compliance with stock class provisions. (1) If any association
referred to in sub-section (a) hereof does not meet the standards
and requirements established and provided by Section 16OP of this
Article, such association may, on or before January 1, 1962; (i)
comply with such standards and requirements by filing appropriate
articles of amendment with the State Department of Assessments
and Taxation; or (U) if such articles of amendment are not so filed,
or if any such association otherwise fails to conform to the pro-
visions of this Article, such association may, on or before February
1, 1962, file articles of amendment with the State Department of
Assessments and Taxation amending its charter by relinquishing such
portion of its name, powers and purposes as relate to associations
existing under this Article so that it shall cease to exist as an associa-
tion, and pursuant to such articles of amendment shall thereafter
continue in business as an ordinary business corporation for the