MARVIN MANDEL, Governor

1809

(C)   ESCROW.

THE INCORPORATORS SHALL EXECUTE AND DELIVER TO THE
DIVISION DIRECTOR IN ESCROW ANY ASSIGNMENT, PLEDGE, AND
DELIVERY OF FREE SHARE ACCOUNTS IN THE SAVINGS AND LOAN
ASSOCIATION WHICH HE MAY REQUIRE AS A GUARANTY AGAINST
OPERATING DEFICITS AND ANY LOSSES WHICH EXCEED OTHER
RESERVES OF THE SAVINGS AND LOAN ASSOCIATION.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from the
second sentence of Art. 23, §161M(a)(2).

The term "free share account" is substituted
for "account" in light of §6-212 of this
subtitle.

Since this section applies only to
incorporators before formation of the savings
and loan association, the last sentence of
Art. 23, §161M(a)(2) is deleted as
unnecessary.

The words "division director" and "savings and
loan association" are defined in §6—201 of
this subtitle.

(D)       EXPENSE FUND.

(1)    THE INCORPORATORS SHALL ESTABLISH AND
DEPOSIT TO THE CREDIT OF THE CHAIRMAN A CASH EXPENSE FUND
IN AN AMOUNT EQUAL TO AT LEAST 2 5 PERCENT OF THE MINIMUM
INITIAL SUBSCRIPTIONS REQUIRED UNDER SUBSECTION (A) OF
THIS SECTION.

(2)   THE EXPENSE FUND SHALL BE USED TO PAY THE
ORGANIZATIONAL EXPENSES AND, UNTIL EARNINGS ARE
SUFFICIENT TO PAY THE OPERATING EXPENSES AND ANY
DIVIDENDS WHICH   MAY BE DECLARED ON FREE SHARE ACCOUNTS,
THE OPERATING EXPENSES OF THE SAVINGS AND LOAN
ASSOCIATION.

(3)     EXCEPT AS OTHERWISE PROVIDED, A
CONTRIBUTION OF AN INCORPORATOR TO THE EXPENSE FUND IS
NOT A LIABILITY OF THE SAVINGS AND LOAN ASSOCIATION.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from Art.
23, §16lM(b).

The words "chairman" and "savings and loan
association" are defined in §6-201 of this
subtitle.