HARRY HUGHES, Governor

1257

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s)
6—213 through 6—217, inclusive, of Article — Corporations
and Associations, of the Annotated Code of Maryland be
repealed.

SECTION 3. AND BE IT FURTHER ENACTED, That section(s)
of the Annotated Code of Maryland he repealed, amended, or
enacted to read as follows:

Article — Corporations and Associations

6-201.

(G) "GUARANTY STOCK" MEANS CAPITAL STOCK ISSUED BY A
SAVINGS AND LOAN ASSOCIATION WHICH STOCK MEETS BOTH THE
SPECIFIC REQUIREMENTS OF THIS SUBTITLE AND THE GENERAL
REQUIREMENTS OF THIS ARTICLE.

(H) "GUARANTY STOCK ASSOCIATION" MEANS A SAVINGS AND
LOAN ASSOCIATION THAT HAS AUTHORITY UNDER THIS SUBTITLE TO
ISSUE GUARANTY STOCK.

(I) "MUTUAL ASSOCIATION" MEANS A SAVINGS AND LOAN
ASSOCIATION THAT DOES NOT HAVE AUTHORITY UNDER THIS SUBTITLE
TO ISSUE GUARANTY STOCK.

6-213.

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

SECTION.

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

(1)    PRIOR TO JANUARY 1, 1980, THE SAVINGS AND
LOAN ASSOCIATION HAD ISSUED AND OUTSTANDING NOT LESS THAN
$50,000 AGGREGATE AMOUNT OF GUARANTY STOCK AND WAS ACTIVELY
ENGAGED IN BUSINESS AS A GUARANTY STOCK ASSOCIATION IN
ACCORDANCE WITH ALL APPLICABLE PROVISIONS OF MARYLAND LAW
GOVERNING GUARANTY STOCK ASSOCIATIONS;

(2)    THE SAVINGS AND LOAN ASSOCIATION OBTAINS
THE PRIOR WRITTEN APPROVAL OF THE DIVISION DIRECTOR PURSUANT
TO § 6-217 OF THIS SUBTITLE TO CONVERT FROM A MUTUAL SAVINGS
AND LOAN ASSOCIATION TO A GUARANTY STOCK ASSOCIATION; OR

(3)    THE INCORPORATORS OF A NEW SAVINGS AND LOAN
ASSOCIATION DETAIN THE PRIOR WRITTEN APPROVAL OF THE BOARD
OF COMMISSIONERS PURSUANT TO § 6-217.1 OF THIS SUBTITLE TO
FORM A GUARANTY STOCK ASSOCIATION.

(C)    A SAVINGS AND LOAN ASSOCIATION WHICH QUALIFIES
UNDER SUBSECTION (B) OF THIS SECTION SHALL COMPLY WITH THE
FOLLOWING CONDITIONS AND LIMITATIONS: