HARRY HUGHES, Governor

3061

(A)  AUTHORITY TO ISSUE.

IF ITS CHARTER OR BYLAWS PROVIDE, A SAVINGS AND LOAN
ASSOCIATION THAT IS NOT A DEPOSIT ASSOCIATION MAY ISSUE
SAVINGS SHARE ACCOUNTS.

(B)  UNLIMITED NUMBER OF SHARES.

NOTWITHSTANDING ANY PROVISION IN ITS CHARTER OR BYLAWS
BEFORE JULY 1, 1980 ON THE NUMBER OF SAVINGS SHARE ACCOUNTS,
A SAVINGS AND LOAN ASSOCIATION THAT IS NOT A DEPOSIT
ASSOCIATION MAY ACCEPT SUBSCRIPTIONS AND PAYMENT FOR AN
UNLIMITED NUMBER OF SAVINGS SHARE ACCOUNTS WITHOUT OTHER
CORPORATE ACTION.

COMMITTEE COMMENT: This section replaces former CA §
6-212(b).

In this section, the term "savings share account"
was substituted for the former term "free share
account" to modernize terminology. "Free share
accounts" represented a property interest and, as
originally conceived, were fully paid up shares
of interest as compared to an unpaid subscription
or shares that had been borrowed against. The
term later had more general usage.

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

PART III. CAPITAL STRUCTURE OF ASSOCIATIONS — DEPOSIT
ASSOCIATION.

9-314. DEPOSIT ASSOCIATION.

(A)  IN GENERAL.

ONLY A DEPOSIT ASSOCIATION MAY ISSUE SAVINGS DEPOSIT
ACCOUNTS.

(B)  AUTHORITY TO BECOME DEPOSIT ASSOCIATION.

A SAVINGS AND LOAN ASSOCIATION MAY BECOME A DEPOSIT
ASSOCIATION IF:

(1)  ITS CHARTER OR BYLAWS PROVIDE; AND

(2)  THE BOARD OF COMMISSIONERS APPROVES.

9-315. RIGHTS OF OWNER OF DEPOSIT ACCOUNT.

(1) THE HOLDER OF A SAVINGS DEPOSIT ACCOUNT IN A
SAVINGS AND LOAN ASSOCIATION HAS THE SAME CLAIM PRIORITY IN
ANY DISTRIBUTION OF ASSETS ON LIQUIDATION AS A GENERAL
CREDITOR OF THE DEPOSIT ASSOCIATION TO THE EXTENT OF THE
DEPOSIT ACCOUNT'S WITHDRAWAL VALUE.