734                              LAWS OF MARYLAND                     [CH. 434

HUNDRED THOUSAND DOLLARS ($100,000) OR SUCH LARG-
ER AMOUNT AS MAY BE DETERMINED BY THE BOARD TO
BE REQUIRED IN ORDER TO CONDUCT A SAFE AND SOUND
OPERATION IN THE LOCATION OF THE PRINCIPAL OFFICE
OF THE PROPOSED ASSOCIATION. The minimum aggregate
amount of free share accounts [hereinbefore provided] as required
by the Board shall be maintained at all times by any association
incorporated hereunder.

(2) The incorporators, in addition to the payment of initial sub-
scriptions to free share accounts herein required, shall also pay or
cause to be paid to the chairman of the incorporators in cash a sum
equal to six per cent (6%) of the required initial subscriptions, which
amount, if the association be incorporated, shall become and be
credited to the general reserve fund of the association for a period
of five (5) years or until said general reserve fund, less the amount
required to be paid under this subsection, reaches at least six per
cent (6%) of the withdrawal value of the association's free share
accounts, whichever shall first occur. The incorporators shall also
execute and deliver to the Director such assignment, pledge and
delivery of accounts in such association in escrow, as the Director
in his discretion may require to guarantee such association against
operating deficits and against losses of any kind which exceed other
reserves. This subsection shall not be construed as applying to
associations in existence at the effective date of this subsection.

(b) The incorporators shall create an expense fund in an amount

not less than [one-half (½) of the minimum amount of free share

subscriptions required to be paid in under subsection (a) (1) hereof,]
the amount determined to be necessary by the Board which shall be in
addition [thereto,] to the required free share subscriptions from

THE INCORPORATORS SHALL ESTABLISH AN EXPENSE
FUND NOT LESS THAN ONE QUARTER (¼) OF THE MINI-
MUM AMOUNT OF FREE SHARE SUBSCRIPTIONS DETER-
MINED TO BE NECESSARY BY THE BOARD WHICH SHALL
BE IN ADDITION TO THE REQUIRED FREE SHARE SUB-
SCRIPTIONS FROM which expense fund the expense of organizing
the association and its operating expenses may be paid until such
time as its earnings are sufficient to pay its operating expenses in
addition to such dividends as may be declared and paid or credited
to its free share account holders from its earnings. The incorporators
shall deposit to the credit of the chairman of the incorporators in
cash the amount of the expense fund. The amounts contributed to
the expense fund by the incorporators shall not constitute a liability
of the association except as hereinafter provided.

(f) Any association heretofore formed which shall not actively
engage in business by receiving money for free share accounts or
making mortgage loans within ninety (90) days after the effective
date of this section, and any association hereafter formed which shall
not actively engage in business by receiving money for free share
accounts or making mortgage loans within ninety (90) days after
the date upon which its legal corporate existence shall begin, and any
association heretofore or hereafter formed which shall at anytime
NOT actively engage in business by receiving money for free share ac-
counts or making mortgage loans and which shall thereafter for any
continuous period of one hundred eighty (180) days not actively en-