MARVIN MANDEL, Governor

1817

The provisions for additional dividends on
certificate accounts are transferred to Art.
23, §161FF(d) for eventual allocation to the
Business Regulation Article.

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

The word "assets" is defined in Title 1 of
this article,

6-213. GUARANTY STOCK PERMITTED.

(A)   GENERAL RULE.

A SAVINGS AND LOAN ASSOCIATION MAY ISSUE GUARANTY
STOCK IN ADDITION TO ITS FREE SHARE ACCOUNTS, IF THE
SAVINGS AND LOAN ASSOCIATION QUALIFIES UNDER SUBSECTION
(B) OF THIS SECTION AND COMPLIES WITH SUBSECTION (C) OF
THIS SECTION.

(B)   SAVINGS AND LOAN ASSOCIATION WITH OUTSTANDING
GUARANTY STOCK OR AGREEMENT TO SELL GUARANTY STOCK.

(1) A SAVINGS AND LOAN ASSOCIATION QUALIFIES
TO ISSUE GUARANTY STOCK IF IT:

(1)   WAS ORGANIZED BEFORE JANUARY 1, 1961;

(II)  ON JANUARY 1, 1961, HAD THE MINIMUM FREE
SHARE ACCOUNTS REQUIRED BY §6-204(A) OF THIS SUBTITLE;

(III)    ON OR BEFORE OCTOBER 1, 1961, SOLD AND
HAD OUTSTANDING AT LEAST $50,000 OF GUARANTY STOCK; AND

(IV)   IS AUTHORIZED BY ITS CHARTER TO ISSUE
ONE OR MORE CLASSES OF STOCK WHICH ARE NEITHER FREE SHARE
ACCOUNTS NOR BORROWER'S SHARES.

(2)    A SAVINGS AND LOAN ASSOCIATION SHALL BE
CONSIDERED TO HAVE COMPLIED WITH THE REQUIREMENTS OF
PARAGRAPH (1)(IV) OF THIS SUBSECTION IF:

(I)   ON OR BEFORE OCTOBER 1, 1961, THE SAVINGS
AND LOAN ASSOCIATION CONTRACTED OR OTHERWISE ARRANGED FOR
THE SALE OF GUARANTY STOCK IN AN AMOUNT WHICH, TOGETHER
WITH ITS THEN OUTSTANDING GUARANTY STOCK, EQUALED
$50,000;

(II)    ON OR BEFORE OCTOBER 1, 1961, THE
SAVINGS AND LOAN ASSOCIATION ACKNOWLEDGED FORMALLY AND
RECOGNIZED, ON ITS BOOKS OR IN ITS MINUTES, THE AGREEMENT
FOR THE SALE;