926

LAWS OF MARYLAND

Ch. 271

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 14, 1979.

CHAPTER 272

(Senate Bill 630)

AN ACT concerning

Credit Unions - Dividends

FOR the purpose of allowing certain dividends to be paid
daily, removing a requirement on paid-up shares;
altering the time from which a monthly dividend credit
may accrue; correcting language; and generally relating
to dividends.

BY repealing and reenacting, with amendments,

Article 11 - Banks and Trust Companies

Section 155

Annotated Code of Maryland

(1976 Replacement Volume and 1978 Supplement)

SEv.:-ICN 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 11 - Banks and Trust Companies

155.

The board of directors of a credit union may declare a
dividend, not in excess of [eight] 8 percent, from so much
of its net profits at the close of any fiscal year as may be
available after providing for expenses, interest and taxes
accrued. [Provided, however, that no] HOWEVER, A dividend
[shall] MAY NOT be declared until the amount of net earnings
shall have been transferred to the reserve fund, as required
by this article. Any losses sustained may be charged
against the reserve fund, surplus or undivided earnings, and
no dividends shall be declared if the known losses existing
at the close of any fiscal year exceed the balance of the
reserve fund, surplus or undivided earnings after the
payment of said dividend. Dividends may be paid annually,
semiannually, [or] quarterly, OR DAILY, as the bylaws may
provide, and after provision for the required reserves, the
board of directors may declare a dividend to be paid from
the remaining net earnings. [Such dividend shall be paid on