208                              Laws of Maryland                       [Ch. 205

(c)  Special counsel, expenses. Unless directed otherwise by order
of the appointing court, the conservator shall not retain special
counsel, or incur any expenses other than normal operating ex-
penses, or liquidate assets except in the ordinary course of operations.

(d)  Removal of any officer, director or employee. The directors
and officers of any association for whom a conservator has been
appointed as provided herein shall remain in office and the employees
of such association shall remain in their respective positions; how-
ever, by order of the appointing court, upon recommendation of the
Board, the conservator may remove any director, officer, or employee.

(e)  Operation of association. By order of the appointing court,
while an association is in the charge of a conservator, members of
such association shall continue to make payments to the association
in accordance with the terms and conditions of their contracts, and
the conservator may permit free share account holders to withdraw
their accounts from the association pursuant to the provisions of
such order. The conservator shall have power to accept free share
accounts and additions to free share accounts, but any such amounts
received by the conservator may be segregated; if so ordered, such
amounts shall not be subject to offset and shall not be used to liquidate
any indebtedness of such association existing at the time the con-
servator was appointed for it or any subsequent indebtedness in-
curred for the purpose of liquidating the indebtedness of any such
association existing at the time such conservator was appointed. All
expenses of the association during such conservatorship shall be
paid by the association.

161L. RECEIVERSHIP.

(a)  Appointment of receiver. If irregularities complained of in
a final order are not corrected, or if any irregularities complained of
in a petition for the appointment of a conservator are not corrected,
or in the case of any emergency, the Board, if in its judgment the
public interest requires, acting through the Attorney General, may
apply to an equity court for the city or county where the association
has its principal Maryland office for the appointment of a receiver,
who may be the Director. Such court is authorized to appoint a
receiver if it finds that such association: (1) is in an impaired or
insolvent condition; or (2) is in substantial violation of any valid
and applicable law or regulation; or (3) is concealing any of its
assets, books or records; or (4) is conducting an unsafe and unsound
operation.

(b)  Procedure. The procedure in such receivership action, shall
be in all other respects in accordance with the practice in such
court, including all rights of appeal and review provided by law.

161M. INCORPORATION AND ORGANIZATION.

(a) Selection of chairman of incorporators; subscriptions required;
general reserve fund. (1) Any number of NATURAL persons, not less
than five (5), who shall be at least twenty-one (21) years of age, citi-
zens of the United States and bona fide residents of this State, may
hereafter associate as incorporators to establish an association under
this Article upon the terms and conditions and subject to the liabilities
prescribed herein. The incorporators shall appoint one of their num-
ber as chairman of the incorporators. The incorporators shall pay