222                               Laws of Maryland                       [Ch. 205

maintain such special reserves as they may deem advisable to which
charges may be made as the board of directors may determine.

161FF. DIVIDENDS.

(a) Determined by board of directors; restrictions. Subject to the
restrictions set forth in this Article and the association's by-laws,
the board of directors from time to time may determine the rate and
the amount of dividends to be paid on free share accounts. However,
the declaration of dividends on free share accounts shall be subject
to the following restrictions: (1) If the total amount of the general
reserve fund is less than that required in Section 161EE of this
Article, no dividends shall be declared until the allocation provided
by said Section has first been made; (2) Dividends shall not be paid
at any time or under any circumstances from capital or unearned
surplus.

(b)  Small accounts. A dividend need not be allocated to any free
share account which has a withdrawal value of less than twenty-five
dollars ($25.00) on the record date with respect to which the dividend
is paid.

(c)  Resolution governing dividends. The board of directors shall
determine by resolution the method of calculating the amount of any
dividend on free share accounts, and the date on which the same is
to be declared or credited.

161GG. EXPENSES AND MEMORANDUM OF SETTLEMENT.

Every association may require borrowing members to pay all rea-
sonable expenses incurred in connection with the making, closing,
disbursing, extending, readjusting, releasing or renewing of real
estate loans. At each and every settlement there shall be furnished
to the borrower a memorandum of settlement which shall show in
detail each and every charge made in connection with said settlement.
Nothing in this sub-title shall be construed as enlarging, changing,
modifying or amending the usury laws of this State.

161HH. FRANCHISE TAX.

Every federal and domestic association and foreign association ad-
mitted to do business in this State shall pay annually for the use of
the State, in addition to any other tax imposed by law, a franchise tax
to the amount of one-one hundredths of one per cent (1/100 of 1%)
of the aggregate withdrawal value of its free shares purchased in the
State of Maryland, said free shares to be totalled as of December 31
of each and every year, and shall certify the said amount due to the
State to the Comptroller of the Treasury as other state taxes. Such
tax shall be payable without interest at any time on or before April
15, of each and every year, commencing on April 15, 1962, and if
such tax be not paid as above provided, then the said tax shall there-
after bear interest at the rate of one-half of one per cent (½ of 1%)
for each month or fraction of a month, and if such tax be not paid
before the first day of December following, a penalty of five per cent
(5%) on the amount thereof shall be added. Provided, however,
that if by reason of any law of any foreign jurisdiction an associa-
tion chartered in this State and doing business in such other juris-
diction is required to pay a franchise tax to said foreign jurisdiction
based upon its free shares purchased in the State of Maryland, then