HARRY HUGHES, Governor

269

substituted for the prohibition against

impairment of the fund "of 5 percent" to clarify
that the restriction on interest payments also
applies while the savings bank has an initial
guaranty fund.

The present reference to " {t}he dividend ...
declared" is deleted as obsolete and, given the
reference to interest, unnecessary.

GENERAL REVISOR'S NOTE:

The provisions of this subtitle as to the guaranty fund
of a savings bank and the limitations on its reduction are
revised to reflect what appears to be the intent of the
present provisions.

SUBTITLE 4. MEMBERS.

4-401. CAPITAL STOCK PROHIBITED.

A SAVINGS BANK IS A MUTUAL ASSOCIATION AND MAY NOT HAVE
ANY CAPITAL STOCK.

REVISOR'S NOTE: This section presently appears as CA §
6-106.

The only changes are in style.

Throughout this article, present references to a
savings bank "having a capital stock" are deleted
as obsolete. Those savings banks that had
capital stock when this prohibition was enacted
and were exempted from it ceased to exist or to
have capital stock.

4-402. ANNUAL MEETING OF MEMBERS.

THE BYLAWS OF A SAVINGS BANK SHALL PROVIDE FOR ANNUAL
MEETINGS OF THE MEMBERS TO ELECT DIRECTORS AND MEMBERS AND
TO TRANSACT OTHER BUSINESS.

REVISOR'S NOTE: This section presently appears as CA §
6-109.

The only changes are in style.

See also § 4-505 of this title.

SUBTITLE 5. DIRECTORS.

4-501. MANAGEMENT OF SAVINGS BANK.

THE BUSINESS AND AFFAIRS OF A SAVINGS BANK SHALL BE
MANAGED UNDER THE DIRECTION OF A BOARD OF DIRECTORS.

REVISOR'S NOTE: This section is new language added for