2028

LAWS OF MARYLAND

[Ch. 311

(2)        THE PAYMENT IS MADE IN ACCORDANCE WITH

THE RULES AND REGULATIONS OF THE BOARD OF COMMISSIONERS.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from the
second sentence of present Art. 11, §16lP(a).

The provisions of present §16lP(a) which
relate to one class of share or stock and to
the prohibition against a fixed rate appear in
§6—212 of the Corporations and Associations
Article.

(E) DIVIDENDS ON GUARANTY STOCK.

GUARANTY STOCK IS ENTITLED TO PAYMENTS OF DIVIDENDS
ONLY AFTER DIVIDENDS ON EVERY FREE-SHARE ACCOUNT ARE
DECLARED AND PAID AT A RATE OF NOT LESS THAN 2 PERCENT
AND NOT MORE THAN 3.5 PERCENT IN ACCORDANCE WITH THE
RULES AND REGULATIONS OF THE BOARD OF COMMISSIONERS.

REVISOR'S NOTE: This subsection is new language
derived without substantive change from the
second clause of present Art. 11, §161P(c)(4).

The provisions of present §161P(c) which
relate to the nature of guaranty stock, in
general, appear in §6—215 of the Corporations
and Associations Article.

SECTION 5. AND BE IT FURTHER ENACTED, That new
Sections 249, 250, and 310 be and they are hereby added
to Article 48A — Insurance Code of the Annotated Code of
Maryland (1972 Replacement Volume and 1974 Supplement),
to read as follows:

Article 48a — Insurance Code

249. FORMATION AND ORGANIZATION.

THE FORMATION AND ORGANIZATION OF A DOMESTIC INSURER
SHALL BE GOVERNED IN ACCORDANCE WITH THE PROVISIONS OF
TITLE 6, SUBTITLE 5 OF THE CORPORATIONS AND ASSOCIATIONS
ARTICLE.

250.        APPLICABILITY OF CORPORATIONS AND ASSOCIATIONS

ARTICLE.

IN ADDITION TO THE PROVISIONS OF THIS ARTICLE, EVERY
DOMESTIC INSURER HAS THE POWERS UNDER AND IS SUBJECT TO