SPIRO T. AGNEW, Governor                      1307

RESERVE FUND SURPLUS OR UNDIVIDED PROFITS of a
portion of the profits as set by the Board at not less than five per

cent (5%) nor more than ten per cent (10%).

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 161EE(a) of Article 23 of the Annotated Code of
Maryland (1966 Replacement Volume), title "Corporations," sub-
title "III. Particular Classes of Corporations," subheading "Building
or Homestead Associations," be and it is hereby repealed and re-
enacted, with amendments, to read as follows:

161EE. Reserves.

(a) Minimum allocation.—Each association shall maintain a
general reserve fund which shall be used solely for the purpose of
absorbing losses and to which the board of directors shall allocate
such portion of the association's profits as the board may determine;
[except that] whenever the total amount of such reserve is less than
six per cent (6%) of the aggregate withdrawal value of the asso-
ciation's free share accounts, the allocation to such reserve upon each
apportionment of profits shall be [not less than ten per cent (10%)]
such percentage of the profits being apportioned as the Board may
by regulation prescribe, from time to time, but in any event shall not
be less than five per cent (5%) nor more than ten per cent (10%)
of the profits being apportioned, or such lesser portion as will in-
crease such reserve to the required total amount. Whenever an asso-
ciation has a general reserve fund totaling at least six per cent (6%)
of the aggregate withdrawal value of the free share accounts of the
association, but the total of the general reserve fund, surplus, and
undivided profits of the association is less than ten per cent (10%)
of the aggregate withdrawal value of its free share accounts, the
allocation to- the general reserve fund upon each apportionment of
profits shall be such percentage of the profits being apportioned as
the Board may by regulation prescribe, from time to time, but in
any event shall not be less than five per cent (5%) nor more than ten
per cent (10%) of the profits being apportioned, or such lesser por-
tion as will increase the total of general reserve fund, surplus, and
undivided profits to ten per cent (10%) of the aggregate withdrawal
value of the free share accounts of the association.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968.

Approved May 7, 1968.

CHAPTER 650
(House Bill 186)

AN ACT to repeal Sections 150 and 161Z of Article 23 of the Anno-
tated Code of Maryland (1966 Replacement Volume and 1967
Supplement), title "Corporations," subtitle "III. Particular Classes
of Corporations," subheading "Building or Homestead Associa-
tions," and to enact a new Section 161Z in lieu thereof, to stand