1810

LAWS OF MARYLAND

[Ch. 311

6-205. REPAYMENT OF CONTRIBUTIONS TO EXPENSE FUND.

(A)   IN GENERAL.

CONTRIBUTIONS OF THE INCORPORATORS TO THE EXPENSE
FUND MAY BE REPAID PRO RATA TO THEM FROM THE NET EARNINGS
OF THE SAVINGS AND LOAN ASSOCIATION AFTER PROVIDING FOR
THE STATUTORY RESERVES AND THE DECLARATION OF DIVIDENDS
ON THE FREE SHARE ACCOUNTS AS REQUIRED BY ARTICLE 23,
§161M(B) OF THE CODE.

(B)   LIQUIDATION.

IF THE SAVINGS AND LOAN ASSOCIATION LIQUIDATES
BEFORE REPAYMENT OF THE CONTRIBUTIONS, CONTRIBUTIONS
SHALL BE REPAID PRO RATA TO THE INCORPORATORS FROM THE
UNEXPENDED EXPENSE FUND, AFTER THE PAYMENT OF:

(1)   EVERY LIQUIDATION EXPENSE;

(2)   EVERY CREDITOR; AND

(3)    THE WITHDRAWAL VALUE OF EVERY FREE SHARE
ACCOUNT.

(C)   DIVIDENDS.

EACH INCORPORATOR SHALL BE PAID DIVIDENDS ON HIS
CONTRIBUTIONS TO THE EXPENSE FUND AND, FOR THIS PURPOSE,
HIS CONTRIBUTIONS SHALL BE CONSIDERED IN EVERY RESPECT A
FREE SHARE ACCOUNT OF THE SAVINGS AND LOAN ASSOCIATION.

(D)   RECORDS.

THE RECORDS OF THE SAVINGS AND LOAN ASSOCIATION
SHALL REFLECT THE EXPENSE FUND.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23,
§161M(d).

The term "savings and loan association" is
defined in §6-201(g) of this subtitle.

6-206. SURETY BOND.

(A) REQUIRED.

THE CHAIRMAN SHALL OBTAIN FROM A SURETY COMPANY
QUALIFIED TO DO BUSINESS IN THE STATE AND DELIVER TO THE
DIVISION DIRECTOR A BOND IN AN AMOUNT AT LEAST EQUAL TO
THE TOTAL OF THE MINIMUM INITIAL SUBSCRIPTIONS, THE
GENERAL RESERVE FUND, AND THE EXPENSE FUND.