J. MILLARD TAWES, GOVERNOR                               199

(f)  In order to achieve the aforesaid purposes and policy, it is
necessary that all associations, EXCEPT AS PROVIDED IN SEC-
TION 161P OF THIS ARTICLE, shall have only one kind or class of
shares or stock and that all the holders of such shares or stock shall
have equal rights as to voting, earnings, and assets;

(g) In order to further the policies herein expressed, the provisions
of this Article applicable to associations shall be liberally construed
to promote and foster the purposes of such associations.

161B. APPLICATION OF PROVISIONS.

(a)  Definition of "association." As used in this sub-title, the word
"association" shall mean building, savings and loan or homestead
association or any other similar association by whatever name called.

(b)   Domestic and foreign associations. The provisions of this
Article shall apply to all associations heretofore or hereafter or-
ganized under the laws of this State; and to all foreign associations
duly authorized to do business in this State;

(c)  Federal associations. Unless Federal laws or regulations pro-
vide otherwise, Federal associations incorporated pursuant to the
Homeowners Loan Act of 1933, as amended, and their members shall
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.

161C. PROHIBITIONS.

(a)  Who may transact business. No person or group of persons
except (1) an association duly incorporated under Sections 161A
through 161KK of this Article, or (2) an association duly incorpo-
rated prior to the enactment of the aforesaid Sections and conducted
in conformity with the aforesaid Sections, or (3) a Federal associa-
tion, 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, with the ap-
proval of the Board, a court of competent jurisdiction may issue an
injunction to restrain any person or association from violating or
continuing to violate any of the provisions of sub-section (a) hereof.

(c)  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 thou-
sand dollars ($1,000.00) for each offense.

161D. EFFECT ON EXISTING BUILDING OR HOMESTEAD
ASSOCIATIONS.

(a) By-laws, shares, etc.; operation. Except as provided in sub-
sections (b) and (c) hereof, the by-laws, shares, contracts, and ob-