3076

LAWS OF MARYLAND

Ch. 856

COMMITTEE COMMENT: This section replaces former Art.
23, §§ 160 and 160 1/2.

In subsection (a) of this section, the former
phrases "from time to time" and "but pay
dividends on other funds in account with it
during the same dividend period" were deleted as
unnecessary.

Also in subsection (a) of this section, the term
"interest" was added for consistency with this
subtitle.

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

9-407. SMALL ACCOUNTS.

(A)  IN GENERAL.

AS TO ANY SAVINGS ACCOUNT THAT HAS A WITHDRAWAL VALUE
OF LESS THAN $25, A SAVINGS AND LOAN ASSOCIATION:

(1)  NEED NOT PAY A DIVIDEND OR INTEREST ON THE
ACCOUNT; AND

(2)  MAY NOT CHARGE A PENALTY OR SERVICE CHARGE.

(B)  EXCEPTION.

THIS SECTION DOES NOT APPLY TO A NEGOTIABLE OR
TRANSFERABLE ORDER OF WITHDRAWAL ACCOUNT.

COMMITTEE COMMENT: This section is new language that
replaces former Art. 23, § 161FF(b).

Subsection (b) of this section is a new provision
added as a corollary to the authority to have
"NOW" withdrawals granted in § 9-408.

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

9-408. WITHDRAWALS.

(A)  WITHDRAWALS PERMITTED.

AT ANY TIME, A HOLDER OF A SAVINGS ACCOUNT IN A SAVINGS
AND LOAN ASSOCIATION MAY REQUEST TO WITHDRAW ALL OR ANY PART
OF THE MONEY IN THE ACCOUNT OF THE HOLDER, AND FOR CERTAIN
CLASSES OF ACCOUNTS, THE REQUEST MAY BE MADE BY A NEGOTIABLE
OR TRANSFERABLE ORDER.

(B)  NEGOTIABLE OR TRANSFERABLE ORDERS OF WITHDRAWAL.

(1) A SAVINGS AND LOAN ASSOCIATION MAY PERMIT
WITHDRAWALS FROM A SAVINGS ACCOUNT TO BE MADE BY NEGOTIABLE
OR TRANSFERABLE ORDER.