MARVIN MANDEL, Governor

2027

A PERSON MAY NOT TRANSACT A SAVINGS AND LOAN
BUSINESS OR DO ANY BUSINESS UNDER ANY NAME OR TITLE OR
CIRCULATE OR USE ANY ADVERTISEMENT OR REPRESENTATION
WHICH INDICATES OR REASONABLY IMPLIES THE OPERATION OF A
SAVINGS AND LOAN BUSINESS UNLESS THAT PERSON:

(1)   IS AN ASSOCIATION, A FEDERAL ASSOCIATION,
OR A FOREIGN ASSOCIATION AUTHORIZED TO DO BUSINESS IN THE
STATE; AND

(2)   COMPLIES WITH AND CONDUCTS ITS BUSINESS
IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THIS
ARTICLE AND THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

161M.

(A)       MAINTENANCE OF FREE-SHARE ACCOUNTS AND GENERAL
RESERVE FUND.

(1)        EVERY ASSOCIATION SHALL MAINTAIN AT ALL

TIMES THE MINIMUM AGGREGATE AMOUNT OF FREE-SHARE ACCOUNTS
WHICH THE BOARD OF COMMISSIONERS REQUIRES.

(2) EACH ASSOCIATION SHALL MAINTAIN THE

GENERAL RESERVE FUND REQUIRED UNDER §6-303(B) OF THE

CORPORATIONS AND ASSOCIATIONS ARTICLE UNTIL THE GENERAL
RESERVE FUND MINOS THE AMOUNT REQUIRED TO BE PAID UNDER
§6-203(B) OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE IS
EQUAL TO AT LEAST 6 PERCENT OF THE WITHDRAWAL VALUE OF
THE FREE-SHARE ACCOUNTS OF THE ASSOCIATION OR UNTIL A
FIVE YEAR PERIOD EXPIRES, WHICHEVER OCCURS FIRST.

(B)       REPAYMENT OF EXPENSE FUND CONTRIBUTIONS.

REPAYMENT OF CONTRIBUTIONS OF AN INCORPORATOR TO THE
EXPENSE FUND OF AN ASSOCIATION MAY BE MADE UNDER § 6-205
OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE AFTER
PROVISION FOR STATUTORY RESERVES AND AFTER DECLARATIONS
OF DIVIDENDS ON FREE-SHARE ACCOUNTS OF NOT LESS THAN 2
PERCENT PER ANNUM.

161FF.

(D) ADDITIONAL DIVIDENDS ON FREE-SHARE ACCOUNTS.

THE PROVISIONS OF THIS ARTICLE AND TITLE 6, SUBTITLE
2 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE DO NOT
PREVENT THE PAYMENT FROM EARNINGS OF AN ADDITIONAL
DIVIDEND OF NOT MORE THAN 1.5 PERCENT PER ANNUM ON EVERY
FREE SHARE ACCOUNT MAINTAINED AT A SPECIFIED MINIMUM
AMOUNT FOR A SPECIFIED MINIMUM PERIOD OF TIME IF:

(1) THE BOARD OF COMMISSIONERS BY RULE OF
REGULATION ALLOW THE PAYMENT; AND