198                              Laws of Maryland                       [Ch. 205

title "Building or Homestead Associations", to follow immediately
after Section 161 thereof, providing generally for the organization,
incorporation, operation, conduct, regulation of and supervision
over the savings and loan business, which is known generally as
the building, savings and loan or homestead business; providing
further for the investments, withdrawal of accounts, taxation,
membership, promotional activities, management and functions
of such businesses, including class and type of securities, and
allocation of profits, reserves and dividends; providing for the
branching, consolidation, merger, dissolution, and revival of such
businesses; making provision for conservators and receivers for
such businesses; exempting accounts of such businesses from
"Blue Sky Law"; creating a Board of Building, Savings and Loan
Association Commissioners, and making provision for the mem-
bers of such Board and for their qualifications, tenure, powers
and duties; creating a Department of Building, Savings and Loan
Associations, providing for a Director and for other officers and
employees of this Department, and making provision for the ap-
pointment, duties, compensation, policy, powers and duties of all
such officers and employees of this Department; providing methods
for compliance with stock class requirements; providing penalties
for failure or refusal to comply with certain provisions of this
Act; and relating generally to the organizations and businesses
known generally as building, savings and loan or homestead busi-
nesses in this State.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Sections 161 A-161KK be and they are hereby added to
Article 23 of the Annotated Code of Maryland (1957 Edition), title
"Corporations", sub-title "Building or Homestead Associations" to
follow immediately after Section 161 thereof, and to read as follows:

161 A. POLICY.

It is the declared policy of this State that:

(a)  The savings and loan business, otherwise known as the build-
ing, savings and loan or homestead business, which is within the
scope of this Article, has so expanded in recent years and has become
so integrated with the financial institutions of this State and is so
important as a method of promoting home ownership and thrift,
that such business is affected with a public interest and shall be
supervised as a business affecting the economic security and general
welfare of the people of this State;

(b)   Such business shall be conducted only by associations or-
ganized and conducted in accordance with the authority provided by
this Article;

(c)  The number and minimum size of the associations conducting
such business shall be controlled in the interest of securely and
efficiently serving the needs of the localities in which they operate;

(d)  The public interest requires the promotion and fostering of
the building, savings and loan or homestead business and the assur-
ance of its financial stability;

(e)  Such associations shall be organized for the purpose of ac-
cepting free share accounts and making loans to their members;