3084

LAWS OF MARYLAND

Ch. 856

COMMITTEE COMMENT: This section is a new provision
added to parallel provisions commonly found in
law related to financial institutions.

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

9-417. RESERVED.

9-418. RESERVED.

9-419. INVESTMENTS AUTHORIZED.

(A) INVESTMENTS.

SUBJECT TO THE REGULATIONS OF THE BOARD OF
COMMISSIONERS, A SAVINGS AND LOAN ASSOCIATION MAY INVEST IN
ANY OF THE FOLLOWING TYPES OF INVESTMENTS:

(1)  ANY MORTGAGE ON REAL PROPERTY THAT IS A
FIRST OR SECOND LIEN ON PROPERTY;

(2)  ANY PARTICIPATION INTEREST IN A MORTGAGE;

(3)  ANY LOAN THAT IS SECURED BY ANY SAVINGS
ACCOUNTS IN THE ASSOCIATION TO THE EXTENT OF THE WITHDRAWAL
VALUE OF THE RESPECTIVE ACCOUNT;

(4)  ANY GROUND RENT IN THIS STATE;

(5)  ANY GENERAL OBLIGATION OF, OR OBLIGATION
GUARANTEED AS TO PRINCIPAL AND INTEREST BY, OR OTHER
INSTRUMENT OF:

(I)  THIS STATE OR ANY OF ITS POLITICAL
SUBDIVISIONS OR AGENCIES; OR

(II)  THE FEDERAL GOVERNMENT OR ANY OF ITS
AGENCIES OR INSTRUMENTALITIES;

(6)  ANY GENERAL OBLIGATION OF, OR GUARANTEED AS
TO PRINCIPAL AND INTEREST BY, ANY OTHER STATE IF:

(I)  THE BOARD OF COMMISSIONERS APPROVES;
AND

(II)  THE INVESTMENT IS NOT MORE THAN 5
PERCENT OF THE ASSOCIATION'S SAVINGS LIABILITY;

(7)  REAL PROPERTY THAT IS:

(I) REASONABLY ANTICIPATED TO BE NECESSARY
OR CONVENIENT TO CONDUCT ITS BUSINESS, WHETHER OR NOT THE
PROPERTY IS ALSO INCOME PRODUCING IN PART;

(II) BOUGHT AT AUCTION SALE IF THE
ASSOCIATION HAS ANY LIEN OR CLAIM ON THE PROPERTY;