Marvin Mandel, Governor                          1107

in common, and (2) by either husband or wife alone, or as a tenant
by the entireties, a joint tenant, or as a tenant in common to the
other spouse alone, or to the husband and wife as tenants by the
entireties, as joint tenants, or as tenants in common. All con-
veyances described in this subsection, whether made before or after
the effective date hereof, are ratified, confirmed, and declared valid.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1970.

Approved April 28, 1970

CHAPTER 493
(House Bill 973)

AN ACT to repeal and re-enact, with amendments, Section 161EE(a)
of Article 23 of the Annotated Code of Maryland (1969 Supple-
ment) title "Corporations," subtitle "III. Particular Classes of
Corporations," subheading "Building or Homestead Associations,"
to provide that the board BOARD may, on a showing of cause and
with such safeguard as it may deem proper, waive the reserve fund
requirements when an association has a minimum of six per cent
(6%) in its general reserve fund.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 161EE(a) of Article 23 of the Annotated Code of Mary-
land (1969 Supplement), title "Corporations," subtitle "III. Particu-
lar Classes of Corporations," subheading "Building or Homestead
Associations," be and it is hereby repealed and re-enacted, with
amendments, to read as follows:

161EE.

(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;
whenever the total amount of such reserve is less than six percent
(6%) of the aggregate withdrawal value of the association's free
share accounts, the allocation to such reserve upon each apportion-
ment of profits shall be such percentage of the profits being appor-
tioned as the Board may by regulation prescribe, from time to time,
but in any event shall not be less than five percent (5%) of the profits
being apportioned, or such lesser portion as will increase such reserve
to the required total amount. Whenever an association has a general
reserve fund totaling at least six percent (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 percent (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