796

LAWS OF MARYLAND

Ch. 267

this business is affected with a public interest and
shall be supervised as a business affecting the economic
security and general welfare of the people of the State;

(b)    This business shall be conducted only by
associations organized and conducted in accordance with
the authority provided by this article and the
Corporations and Associations Article;

(c)    The number and minimum size of the
associations conducting this business shall be controlled
in the interest of securely and efficiently serving the
needs of the localities in which they operate;

(d)    The public interest requires the promotion and
fostering of the savings and loan for] business and the
assurance of its financial stability;

(e)    Savings and loan associations shall be
organized for the purpose of accepting free share
accounts and making loans to their members;

(f)    In order to achieve these purposes and policy,
it is necessary that all associations, except as provided
in §6—213 of the Corporations and Associations Article,
shall have only one kind or class of shares or stock and
that all the holders of these shares or stock shall have
equal rights as to voting, earnings, and assets;

(g)    In order to further the policies herein
expressed, the provisions of this article and the
Corporations and Associations Article applicable to
associations shall be liberally construed to promote and
foster the purposes of these associations.

161M.

(a) (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—203(b) ] §6—204(B)
of the Corporations and Associations Article until the
general reserve fund minus the amount required to be paid
under [§6-203(b)] §6-204(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.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 4, 1976.