HARRY HUGHES, Governor

3065

         (2) BE NONASSESSABLE, NOTWITHSTANDING ANY
PROVISION IN THE CHARTER, BYLAWS, OR ON THE CAPITAL STOCK
CERTIFICATE;

(3) BE NONREDEEMABLE UNTIL EACH CLAIM AGAINST
AND EACH LIABILITY OF THE CAPITAL STOCK ASSOCIATION IS
SATISFIED FULLY, AND EACH SAVINGS ACCOUNT IS PAID TO ITS
HOLDER AT ITS WITHDRAWAL VALUE;

          (4) BE ENTITLED TO PAYMENT OF DIVIDENDS BUT ONLY
AFTER DIVIDENDS OR INTEREST ARE PAID ON EACH SAVINGS ACCOUNT
AS PROVIDED IN SUBTITLE 4 OF THIS TITLE;

(5) BE DESIGNATED "CAPITAL STOCK"
NOTWITHSTANDING ANY CHARTER OR BYLAW PROVISION; AND

          (6) EACH CERTIFICATE THAT EVIDENCES CAPITAL
STOCK SHALL STATE THAT THE SHARES ARE " CAPITAL STOCK" AND
ARE NOT INSURED BY THE MARYLAND SAVINGS-SHARE INSURANCE

CORPORATION OR THE FEDERAL SAVINGS AND LOAN INSURANCE

CORPORATION.

COMMITTEE COMMENT: This section replaces former CA §

6-214(b)(1), (2), (3), (4), and (5) and CA §

6-214(c).

In item (2) of this section, the  former reference

to stock issued before January    1, 1980 being

nonassessable after that date    was deleted as

obsolete in light of the phrase    "notwithstanding
any provision ...".

In item (3) of this section, "nonredeemable" is
substituted for the term "nonwithdrawable" as
being more accurate.

The second clause of former CA § 6-201(g), which
defined capital stock as stock that met the
requirements of this section and of the
Corporations and Associations Article, was
deleted as unnecessary.

Former Art. 23, § 161FF(e), which provided that
dividends on capital stock are paid only after
dividends on free share accounts at a certain
rate, was deleted as unnecessary in light of the
similar provision in item (4) of this section and
as outdated and within general regulatory
authority of the Board of Commissioners as it
related to rate of payment.

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

9-323. CONTROL.