3044

LAWS OF MARYLAND

Ch. 856

"Division Director", "capital stock", and
"savings and loan association" are defined in §
9-101 of this title.

9-218. INITIAL SUBSCRIPTION FOR SAVINGS ACCOUNTS.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL DELIVER TO THEIR CHAIRMAN, AS SAVINGS ACCOUNTS IN THE
ASSOCIATION, AN AGGREGATE AMOUNT IN SUBSCRIPTIONS OF AT
LEAST $500,000 OR ANY GREATER AMOUNT THAT THE BOARD OF
COMMISSIONERS DETERMINES IS NECESSARY TO CONDUCT A SAFE AND
SOUND OPERATION AT THE PROPOSED LOCATION OF THE PRINCIPAL
OFFICE OF THE ASSOCIATION IN THIS STATE. THE AGGREGATE
AMOUNT CONSTITUTES THE INITIAL SUBSCRIPTION FOR SAVINGS
ACCOUNTS.

COMMITTEE COMMENT: This section replaces CA § 6-204(a).

The fund is titled "Initial Subscription for
Savings Accounts" for clarity.

The amount of the fund is increased from $100,000
to $500,000 on the advice of the Board of
Commissioners..

"Savings and loan association" and "Board of
Commissioners" are defined in § 9-101 of this
title.

9-219. INITIAL GENERAL RESERVE FUND.

(A)  ACCOUNT ESTABLISHED.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL DELIVER TO THE CREDIT OF THE CHAIRMAN OF THE
INCORPORATORS IN CASH AN AMOUNT EQUAL TO 6 PERCENT OF THE
REQUIRED INITIAL SUBSCRIPTION FOR SAVINGS ACCOUNTS AS AN
INITIAL GENERAL RESERVE FUND.

(B)  USES.

THE INITIAL GENERAL RESERVE FUND SHALL BE USED ONLY FOR
THE PURPOSE OF ABSORBING LOSSES.

(C)  TERMINATION OF INITIAL GENERAL RESERVE FUND.

THE INITIAL GENERAL RESERVE FUND SHALL BE MAINTAINED
UNTIL THE FIRST TO OCCUR OF THE FOLLOWING EVENTS:

(1)  EXPIRATION OF A PERIOD OF 10 YEARS;

(2)  UNTIL THE GENERAL RESERVE FUND, LESS THE
INITIAL GENERAL RESERVE FUND, REACHES 6 PERCENT OF THE
AGGREGATE SAVINGS LIABILITY OF THE SAVINGS AND LOAN
ASSOCIATION; OR

(3)  THE BOARD OF COMMISSIONERS APPROVES THE
TERMINATION OF THE INITIAL GENERAL RESERVE FUND.