3054

LAWS OF MARYLAND

Ch. 856

(I)  ANY OFFICER OR DIRECTOR OF THE
ASSOCIATION; OR

(II)  ANY CORPORATION OR BUSINESS IN WHICH
AN INTEREST OF 10 PERCENT OR MORE IS OWNED BY AN OFFICER OR
DIRECTOR OF THE ASSOCIATION, OR MEMBER OF THE IMMEDIATE
FAMILY OF AN OFFICER OR DIRECTOR.

(B) EXCEPTIONS TO PROHIBITION.

A LOAN IS NOT PROHIBITED BY SUBSECTION (A) OF THIS
SECTION IF THE LOAN IS:

(1)  SECURED BY THE BORROWER'S:

(I)  PRINCIPAL RESIDENCE; OR

(II)  SAVINGS ACCOUNTS IN THE ASSOCIATION,
PROVIDED THAT A LOAN SECURED BY A SAVINGS ACCOUNT MAY NOT BE
MORE THAN THE WITHDRAWAL VALUE OF THE ACCOUNT; OR

(2) (I) APPROVED BY A TWO-THIRDS VOTE OF THE
BOARD OF DIRECTORS, ANY INTERESTED DIRECTOR TAKING NO PART
IN THE VOTE;

AND

(II) APPROVED BY THE DIVISION DIRECTOR;

(III) SECURED BY COLLATERAL APPRAISED BY A
DISINTERESTED APPRAISER APPROVED BY THE DIVISION DIRECTOR.

(C) SAVINGS ACCOUNTS.

AN OFFICER OR DIRECTOR OF A SAVINGS AND LOAN
ASSOCIATION MAY NOT DIRECTLY OR INDIRECTLY BUY AT LESS THAN
FACE VALUE ANY INTEREST IN A SAVINGS ACCOUNT ISSUED BY THE
ASSOCIATION.

COMMITTEE COMMENT: This section replaces former Art.
23, § 161W.

In this section, the former inclusion of
"employee" was deleted as unnecessary to normal
business relationships and conflict of interest
standards.

Subsection (a)(1) of this section is a new
provision to delineate those who are considered
a member of the family under this section.

In subsection (a)(2) of this section, the phrase
"directly or indirectly" is added for clarity.

In subsection (b)(l)(i) of this section, the
phrase "principal residence" is substituted for
"home" as the presumed legislative intent since
otherwise "home" could include a vacation
cottage.