3046

LAWS OF MARYLAND

Ch. 856

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

9-220. EXPENSE FUND.

(A)  ACCOUNT ESTABLISHED.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL DELIVER TO THE CREDIT OF THE CHAIRMAN OF THE
INCORPORATORS, AS AN EXPENSE FUND, CASH IN AN AMOUNT EQUAL
TO AT LEAST 25 PERCENT OF THE MINIMUM INITIAL SUBSCRIPTIONS
FOR SAVINGS ACCOUNTS UNDER § 9-218 OF THIS SUBTITLE.

(B)  USES.

THE EXPENSE FUND SHALL BE USED TO PAY:

(1)  ORGANIZATIONAL EXPENSES; AND

(2)  OPERATING EXPENSES UNTIL EARNINGS ARE
SUFFICIENT TO PAY THE OPERATING EXPENSES AND ANY DIVIDENDS
OR INTEREST ON SAVINGS ACCOUNTS.

(C)  DIVIDENDS OR INTEREST; OWNERSHIP.

EXCEPT AS TO WITHDRAWAL RIGHTS, PRIORITY OF CLAIMS ON
LIQUIDATION, AND THE PROVISIONS OF THIS SECTION, AN
INCORPORATOR'S CONTRIBUTION TO THE EXPENSE FUND SHALL BE
TREATED AS A SAVINGS ACCOUNT IN THE SAVINGS AND LOAN
ASSOCIATION.

(D)  REPAYMENT AFTER INCORPORATION.

CONTRIBUTIONS OF THE INCORPORATORS TO THE EXPENSE FUND
MAY BE REPAID PRO RATA TO THEM FROM THE NET EARNINGS OF THE
SAVINGS AND LOAN ASSOCIATION AFTER PROVIDING FOR THE
REQUIRED ALLOCATION TO THE GENERAL RESERVE FUND AND THE
PAYMENT OF DIVIDENDS OR INTEREST ON THE SAVINGS ACCOUNTS OF
AT LEAST 2 PERCENT A YEAR.

(E)  LIQUIDATION.

IF THE SAVINGS AND LOAN ASSOCIATION LIQUIDATES BEFORE
REPAYMENT OF THE CONTRIBUTIONS, CONTRIBUTIONS SHALL BE
REPAID PRO RATA TO THE INCORPORATORS FROM THE UNEXPENDED
EXPENSE FUND AFTER THE PAYMENT OF ALL:

(1)  LIQUIDATION EXPENSES;

(2)  CREDITORS; AND

(3)  THE WITHDRAWAL VALUE OF SAVINGS ACCOUNTS.

(F)  EXCEPTION.