3048

LAWS OF MARYLAND

Ch. 856

The first sentence of former CA § 6-217(b), which
permitted the Board of Commissioners to require
an additional amount of money as paid-in surplus,
was deleted as an unnecessary provision and as
inequitable. A capital stock association is
required to provide initial subscription for
capital stock account, which is already an amount
additional to that required of a proposed mutual
association. The requirement was also viewed as
unnecessary in light of the Board's authority to
increase the amount required for other initial
accounts. The allocation to paid-in surplus is a
matter of business judgment and internal
accounting. See § 9-216 of this subtitle and its
committee comment.

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

9-223. REFUND ON FAILURE TO INCORPORATE.

IF THE ATTEMPT TO INCORPORATE A SAVINGS AND LOAN
ASSOCIATION IS UNSUCCESSFUL:

(1)  THE CHAIRMAN OF THE INCORPORATORS SHALL
REFUND AMOUNTS PAID TO THE INITIAL ACCOUNTS UNDER THIS
SUBTITLE, EXCEPT THAT THE EXPENSE FUND AND PAID-IN SURPLUS
ACCOUNTS ARE FIRST SUBJECT TO ALL REASONABLE EXPENSES; AND

(2)  THE DIVISION DIRECTOR SHALL RELEASE THE
SURETY BOND OF THE CHAIRMAN OF THE INCORPORATORS WHEN THE
DIRECTOR HAS SATISFACTORY ASSURANCE THAT:

(I)  ALL EXPENSES HAVE BEEN PAID; AND

(II)  ALL AMOUNTS UNDER ITEM (1) OF THIS
SECTION HAVE BEEN REFUNDED.

COMMITTEE COMMENT: This section replaces former CA §
6-210(b) and (c).

In this section, the clause "if the attempt to
incorporate a savings and loan association is
unsuccessful" was added to make clear that the
amounts are refunded if incorporation fails for
any reason.

In paragraph (1) of this section, the former
reference to an order refusing the articles is
corrected to a final order refusing the
application. See § 9-208 of this title.

"Division Director" and "savings and lean
association" are defined in § 9-101 of this
title.

GENERAL COMMITTEE NOTE: