HARRY HUGHES, Governor

3063

PART IV. CAPITAL STRUCTURE OF ASSOCIATIONS — CAPITAL STOCK
ASSOCIATION.

9-319. POWER TO ISSUE CAPITAL STOCK.

IF ITS CHARTER PROVIDES, A SAVINGS AND LOAN ASSOCIATION
MAY ISSUE CAPITAL STOCK.

COMMITTEE COMMENT: This section replaces former CA §
6-213(a).

The former restriction that permitted only one
class of stock was deleted as being too
restrictive.

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

9-320. GENERAL PROVISIONS.

A CAPITAL STOCK ASSOCIATION:

(1) SHALL OBTAIN THE PRIOR WRITTEN APPROVAL OF
THE DIVISION DIRECTOR FOR EACH PROSPECTUS, OFFERING
CIRCULAR, OR ADVERTISEMENT OFFERING CAPITAL STOCK FOR SALE
OR SUBSCRIPTION;

(2)  SHALL INCLUDE IN EACH PROSPECTUS OFFERING
CAPITAL STOCK A  STATEMENT THAT SHARES OF CAPITAL STOCK ARE
NOT INSURED BY THE MARYLAND SAVINGS-SHARE INSURANCE
CORPORATION OR THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION;

(3)  EXCEPT FOR STOCK ISSUED UNDER A PLAN OF
CONSOLIDATION, MERGER, OR REORGANIZATION APPROVED UNDER §
9-628 OF THIS TITLE, SHALL REQUIRE THAT THE CONSIDERATION
FOR ITS CAPITAL STOCK BE PAID IN CASH AND IN AN AMOUNT NOT
LESS THAN THE PAR VALUE OF THE STOCK;

(4)  MAY ISSUE STOCK OPTIONS UNDER A STOCK OPTION
PLAN APPROVED BY THE DIVISION DIRECTOR;

(5)  MAY NOT GRANT ANY LOAN WHICH IS SECURED IN
WHOLE OR IN PART BY SHARES OF ITS CAPITAL STOCK; AND

(6)  UNLESS THE DIVISION DIRECTOR HAS GIVEN PRIOR
WRITTEN APPROVAL, MAY NOT REPURCHASE SHARES OF CAPITAL STOCK
FOR ITS OWN ACCOUNT.

COMMITTEE COMMENT: This section replaces former CA §§
6-213(c)(2) and (4), 6-214(b)(6), and 6-215.

"Capital stock", "capital stock association" and
"Division Director" are defined in § 9-101 of
this title.