HARRY HUGHES, Governor

3047

SUBSECTIONS (B), (C), AND (D) OF THIS SECTION DO NOT
APPLY TO ANY PORTION OF AN EXPENSE FUND THAT IS PROVIDED
FROM THE PAID-IN SURPLUS OF A CAPITAL STOCK ASSOCIATION.

COMMITTEE COMMENT: This section replaces former CA §§
6-204(d) and 6-205.

Subsection (c) of this section is a new provision
added as a matter of equity.

The former provision in CA §    6-205(d) that the

records of an association    shall reflect the

expense account was deleted    as an unnecessary
statement of the obvious.

The former provision in CA § 6-204(d)(3) that a
contribution to the expense fund is not a
liability of an association was deleted as
inaccurate in light of the liability imposed in
subsections (c) and (d) of this section.

As to repayment if incorporation fails, see §
9-223 of this subtitle.

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

9-221. INITIAL SUBSCRIPTIONS FOR CAPITAL STOCK ACCOUNT.

THE INCORPORATORS OF A CAPITAL STOCK ASSOCIATION SHALL
HAVE SUBSCRIPTIONS FOR CAPITAL STOCK IN AN AGGREGATE OF NOT
LESS THAN $200,000, OR ANY GREATER AMOUNT THAT THE BOARD OF
COMMISSIONERS REQUIRES IN ORDER TO CONDUCT A SAFE AND SOUND
OPERATION.

COMMITTEE COMMENT: This section replaces the second
sentence of former CA § 6-217.1(a).

The amount required is increased from $100,000 to
$200,000 on the advice of the Board of
Commissioners and as being in the best interest
of the public.

"Board of Commissioners", "capital stock", and
"capital stock association" are defined in §
9-101 of this title.

9-222. PAID-IN SURPLUS — CAPITAL STOCK ASSOCIATION.

A CAPITAL STOCK ASSOCIATION MAY USE PAID-IN SURPLUS IF
THE EXPENSE FUND IS NOT SUFFICIENT TO PAY ORGANIZATIONAL AND
OPERATING EXPENSES, AND DIVIDENDS OR INTEREST ON SAVINGS
ACCOUNTS.

COMMITTEE COMMENT: This section replaces the second
sentence of former CA § 6-217.1(b).