HARRY HUGHES, Governor                              3049

Former CA § 6-204(c), which provided that the Director
could require amounts from the incorporators to be held in
escrow by the Director to guarantee against operating
deficits or losses that exceeded reserves, was deleted on
the advice of the Board of Commissioners as unnecessary in
light of the Director's discretion to increase amounts
required in other accounts.

Former CA § 6-222(a)(2), and (3), which provided
respectively for entrance fees and dues, was deleted as
outdated on the advice of the Board of Commissioners.

SUBTITLE 3. ORGANIZATION AND CAPITALIZATION.

PART I. ORGANIZATION.

9-301. MEMBER.

(A)  "MEMBER" DEFINED.

A MEMBER OF A SAVINGS AND LOAN ASSOCIATION MEANS A
HOLDER, AS SHOWN ON THE ASSOCIATION'S RECORDS, OF:

(1)  ONE OR MORE SAVINGS ACCOUNTS, AS TO A MUTUAL
ASSOCIATION; AND

(2)  ONE OR MORE SHARES OF CAPITAL STOCK, AS TO A
CAPITAL STOCK ASSOCIATION.

(B)  MULTIPLE HOLDERS.

(1)  MULTIPLE HOLDERS OF A SINGLE ACCOUNT OR
SHARE OF CAPITAL STOCK SHALL BE CONSIDERED A SINGLE MEMBER.

(2)  NOTICE TO ONE HOLDER OF A MULTIPLE NAME
ACCOUNT OR SHARE OF CAPITAL STOCK IS SUFFICIENT NOTICE TO
ALL HOLDERS.

COMMITTEE COMMENT: This section formerly appeared as CA
§ 6-219(a).

Subsection (a) of this section makes clear that
an association may treat the holder of record as
the owner.

Subsection (b) of this section is new language
added for clarity.

In the light of present understandings that the
relationship a borrower has to a savings and loan
association is only contractual, this section
removes the former provision that made a borrower
a member of an association.

This section also clarifies that in a capital
stock association, a holder of a savings account
is not a member of the association.