3070

LAWS OF MARYLAND

Ch. 856

9-329. PRIORITY OF CLAIMS.

IN ANY DISTRIBUTION OF ASSETS ON LIQUIDATION OF A
SAVINGS AND LOAN ASSOCIATION, THE PRIORITY OF CLAIMS IS AS
FOLLOWS:

(1)  IN A MUTUAL ASSOCIATION:

(I)  GENERAL CREDITORS AND HOLDERS OF
SAVINGS DEPOSIT ACCOUNTS;

(II)  HOLDERS OF SAVINGS SHARE ACCOUNTS;
AND

(III)  CONTRIBUTORS TO THE INITIAL GENERAL
RESERVE FUND AND EXPENSE FUND UNDER SUBTITLE 2 OF THIS
TITLE; AND

(2)  IN A CAPITAL STOCK ASSOCIATION:

(I)  GENERAL CREDITORS AND HOLDERS OF
SAVINGS DEPOSIT ACCOUNTS;

(II)  HOLDERS OF SAVINGS SHARE ACCOUNTS;

(III)  CONTRIBUTORS TO THE INITIAL GENERAL
RESERVE FUND AND EXPENSE FUND UNDER SUBTITLE 2 OF THIS TITLE
UNLESS THE FUNDS WERE PROVIDED BY PAID-IN SURPLUS; AND

(IV)  CAPITAL STOCKHOLDERS.

COMMITTEE COMMENT: This section replaces Art. 23, §
161X(c).

The section is restated to delineate a mutual
association and a capital stock association.

This section makes clear that an association may
treat a holder of record as an owner.

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

GENERAL COMMITTEE COMMENT:

CA § 6-212(a), which provides that a savings and loan
association may issue only one class of shares, that all
shareholders have equal rights as to voting, earnings, and
assets, and that an association may not pay any fixed rate
or amount on a free share account, is deleted as obsolete.
See also this General Committee Comment as to Art, 23, §
161A(f).

Former CA § 6-213(b)(1) is deleted as unnecessary since
an existing guaranty stock association already has the
authority to issue capital stock.