HARRY HUGHES, Governor

3069

9-327 RESERVES.

(A)  GENERAL RESERVE FUND.

A SAVINGS AND LOAN ASSOCIATION SHALL MAINTAIN A GENERAL
RESERVE FUND WHICH SHALL BE USED ONLY FOR THE PURPOSE OF
ABSORBING LOSSES.

(B)  REGULATION OF RESERVES.

THE BOARD OF COMMISSIONERS SHALL REGULATE THE
ALLOCATION OF PROFITS TO RESERVES AND THE MAINTENANCE OF
RESERVES BY A SAVINGS AND LOAN ASSOCIATION IN A MANNER THAT
WILL ASSURE THE PUBLIC INTEREST IS PROTECTED.

(C)  SPECIAL RESERVES.

(1)  A SAVINGS AND LOAN ASSOCIATION MAY MAINTAIN
SPECIAL RESERVES.

(2)  THE BOARD OF DIRECTORS OF A SAVINGS AND LOAN
ASSOCIATION SHALL DETERMINE CHARGES TO SPECIAL RESERVES.

COMMITTEE COMMENT: This section is derived from Art.
23, § 161EE.

On the advice of the Board of Commissioners, the
present statutory amounts were deleted in light
of regulatory authority given to the Board of
Commissioners, and to provide needed flexibility.

Since corporations in general determine amounts
allocated to reserves as a matter of business
judgment, the Committee viewed regulation by the
Board of Commissioners as sufficient protection
of the public interest.

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

9-328. ALLOCATION OF PROFITS.

THE BOARD OF DIRECTORS OF ANY SAVINGS AND LOAN
ASSOCIATION SHALL ALLOCATE THE PROFITS OF THE ASSOCIATION,
AT LEAST ANNUALLY, AT THE TIMES THE BYLAWS PROVIDE.

COMMITTEE COMMENT: This section is derived from Art.
23, § 161DD.

The former references to a specific order of
allocation were deleted in favor of the standard
corporate authority under Maryland General
Corporate Law, and in light of regulatory
overview.

"Savings and loan association" is defined in §
9-101 of this title.