3062

LAWS OF MARYLAND

Ch. 856

(2) IN ADDITION TO PARAGRAPH (1) OF THIS
SECTION, THE HOLDER OF A SAVINGS DEPOSIT ACCOUNT HAS THE
SAME RIGHTS AS THE OWNER OF A SAVINGS SHARE ACCOUNT,
INCLUDING ANY MEMBERSHIP OR VOTING RIGHTS AND THE RIGHT TO
SHARE IN ANY DISTRIBUTION OF REMAINING ASSETS ON
LIQUIDATION.

9-316. GENERAL PROVISIONS — DEPOSIT ASSOCIATIONS.

IF A SAVINGS AND LOAN ASSOCIATION BECOMES A DEPOSIT
ASSOCIATION:

(1)  IT MAY ACCEPT ONLY SAVINGS DEPOSIT ACCOUNTS;

(2)  EXISTING SAVINGS SHARE ACCOUNTS IN THE
ASSOCIATION BECOME SAVINGS DEPOSIT ACCOUNTS;

(3)  THE CONVERSION, FOR THE PURPOSE OF COMPUTING
INTEREST ON ITS SAVINGS ACCOUNTS, SHALL BE CONSIDERED TO
HAVE TAKEN PLACE ON THE IMMEDIATELY PRECEDING REGULAR.
DISTRIBUTION DATE IF THE EFFECTIVE DATE OF THE CONVERSION TO
A DEPOSIT ASSOCIATION IS MADE ON A DATE OTHER THAN THE DATE
ON WHICH AN ASSOCIATION REGULARLY DISTRIBUTES DIVIDENDS; AND

(4)  THE HOLDER OF ANY OUTSTANDING RIGHT TO
RECEIVE FROM THE ASSOCIATION A SAVINGS SHARE ACCOUNT SHALL
RECEIVE INSTEAD A SAVINGS DEPOSIT ACCOUNT.

GENERAL COMMITTEE COMMENT: This Part III is new law
added to permit a savings and loan association to
accept savings deposit accounts in the context of
standard corporate structure. Holders of a
savings deposit account have a contractual
relationship to the association instead of a
mutual property ownership interest. An existing
association that intends to become a deposit
association needs approval by its members in
order to amend its charter or bylaws; changes in
capital structure and status are therefore
consensual.

This section in effect provides that an
association must become a deposit association in
order to offer savings deposit accounts.

This part parallels similar provisions as to
deposit associations under federal law.

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

9-317. RESERVED.

9-318. RESERVED.