HARRY HUGHES, Governor                                   1259

(4)    BE ENTITLED TO PAYMENT OF DIVIDENDS ONLY
AFTER DIVIDENDS ARE DECLARED AND PAID ON EVERY FREE SHARE
ACCOUNT AS PROVIDED IN ARTICLE 23, § 161FF OF THE CODE;

(5)    BE TERMED AND DESIGNATED "GUARANTY STOCK"
NOTWITHSTANDING ANY CHARTER OR BYLAW PROVISION; AND

(6)    BE ISSUED ONLY:

(I)    ON PAYMENT IN CASH OF AT LEAST ITS
PAR VALUE; OR

(II)   UNDER A PLAN OF CONSOLIDATION,
MERGER, OR REORGANIZATION APPROVED UNDER § 6-227 OF THIS
SUBTITLE.

(C) EACH CERTIFICATE WHICH EVIDENCES GUARANTY STOCK
SHALL BEAR ON ITS FACE A STATEMENT THAT THE SHARES ARE
"GUARANTY STOCK" AND ARE NOT INSURED BY THE MARYLAND
SAVINGS-SHARE INSURANCE CORPORATION OR THE FEDERAL SAVINGS
AND LOAN INSURANCE CORPORATION.

6-215.

(A)    A GUARANTY STOCK ASSOCIATION SHALL MAY NOT GRANT
ANY LOAN WHICH IS SECURED IN WHOLE OR IN PART BY SHARES OF
GUARANTY STOCK.

(B)    A GUARANTY STOCK ASSOCIATION MAY NOT REPURCHASE
SHARES OF GUARANTY STOCK FOR ITS OWN ACCOUNT WITHOUT
OBTAINING THE PRIOR WRITTEN APPROVAL OF THE DIVISION
DIRECTOR.

6-216.

(A)    IN THIS SECTION "CONTROLLING PERSON" MEANS AN
INDIVIDUAL OR LEGAL ENTITY, ACTING DIRECTLY OR INDIRECTLY,
IN CONCERT WITH ONE OR MORE OTHER INDIVIDUALS OR LEGAL
ENTITIES, OR THROUGH ONE OR MORE SUBSIDIARIES, WHO OWNS,
CONTROLS, OR HOLDS WITH POWER TO VOTE, OR HOLDS PROXIES
REPRESENTING MORE THAN 10 PERCENT OF THE VOTING SHARES OF
THE GUARANTY STOCK ASSOCIATION, OR CONTROLS IN ANY MANNER
THE ELECTION OF A MAJORITY OF THE DIRECTORS OF THE GUARANTY
STOCK ASSOCIATION. A "CONTROLLING PERSON" SHALL BE A
RESIDENT OF THIS STATE OR THE UNITED STATES.

(B)    NO PERSON MAY DIRECTLY OR INDIRECTLY ACQUIRE
CONTROL OF MORE THAN ONE GUARANTY STOCK ASSOCIATION.

(C)     (1) ANY CONTROLLING PERSON SHALL NOT ENGAGE OR
PARTICIPATE DIRECTLY OR INDIRECTLY IN ANY BUSINESS OR
TRANSACTION CONDUCTED ON BEHALF OF OR INVOLVING THE GUARANTY
STOCK ASSOCIATION WHICH WOULD RESULT IN A CONFLICT OF
INTEREST WITH THE GUARANTY STOCK ASSOCIATION.

(2) NOTWITHSTANDING SUBSECTION (C) (1), A
CONTROLLING PERSON MAY ENGAGE IN ANY BUSINESS OR TRANSACTION
WITH A GUARANTY STOCK ASSOCIATION IF: