MARVIN MANDEL, Governor

2321

CHAPTER 411

(House Bill 143)

AN ACT concerning

Building, Savings and Loan Associations — Creditor

Priorities

FOR the purpose of providing for the priority of claims
against a building, savings and loan association in
the event of a liquidation, dissolution, or winding
up of the association, or in the event of any
situation in which the priority of claims against
the association is in controversy.

BY adding to

Article 23 — Corporations

Section 161X(c)

Annotated Code of Maryland

(1973 Replacement Volume and 1974 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 1612(c) be and it is hereby
added to Article 23 — Corporations, of the Annotated Code
of Maryland (1973 Replacement Volume and 1974 Supplement)
to read as follows:

Article 23 — Corporations

161X.

(C) IN THE EVENT OF VOLUNTARY OR INVOLUNTARY
LIQUIDATION, DISSOLUTION, OR WINDING UP OF THE AFFAIRS OF
AN ASSOCIATION, OR IN THE EVENT OF ANY OTHER SITUATION IN
WHICH THE PRIORITY OF CLAIMS AGAINST AN ASSOCIATION IS IN
CONTROVERSY, THE CLAIMS OF FREE SHAREHOLDERS [[OR HOLDERS
OF SAVINGS DEPOSITS]] OF AN ASSOCIATION ARE SUBORDINATE
TO THE CLAIMS OF GENERAL CREDITORS OF THE ASSOCIATION OR
HOLDERS OF SAVINGS DEPOSITS. THE CLAIMS OF ALL FREE
SHAREHOLDERS OF THE ASSOCIATION, INCLUDING HOLDERS OF
CERTIFICATES OF DEPOSIT, CHRISTMAS CLUB, AND VACATION
CLUB ACCOUNTS, OR ANY OTHER TYPE OF ACCOUNT, ARE EQUAL
AND ARE ENTITLED TO A PRO RATA DISTRIBUTION. THE CLAIMS
OF FREE SHAREHOLDERS ARE SUPERIOR TO THE CLAIMS OF
GUARANTY STOCKHOLDERS IN AN ASSOCIATION.