3092

LAWS OF MARYLAND

Ch. 856

COMMITTEE COMMENT: This section replaces Art. 23, §
161GG.

In this section, "borrower" was substituted for
"borrowing member" since a borrower no longer has
membership status.

In subsection (a) of this section, the term "real
estate" (loan) was deleted since in practice the
section applies to all loans.

In subsection (a) of this section, the former
terms "making, closing, disbursing, extending,
readjusting, releasing or renewing of" were
deleted as included in the phrase, "in connection
with a loan".

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

9-425. DEPOSITORY.

(A) AUTHORITY TO ACT AS A DEPOSITORY.

A SAVINGS AND LOAN ASSOCIATION MAY:

(1) ACT AS A DEPOSITORY OF FUNDS OF:

(I) THE FEDERAL GOVERNMENT AND ITS

AGENCIES; AND

(II) THIS STATE AND ANY OF ITS POLITICAL

SUBDIVISIONS;

(2)  PLEDGE COLLATERAL TO SECURE DEPOSITS; AND

(3)  COMPLY WITH THE TERMS REQUIRED BY THE
DEPOSITOR.

(B) CLAIM PRIORITY.

DEPOSITORS UNDER THIS SECTION ARE GENERAL CREDITORS
UNDER § 9-329 OF THIS TITLE ("PRIORITY OF CLAIMS").

COMMITTEE COMMENT: This section replaces without
substantive change CA § 6-212(c).

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

9-426. MEMBERSHIP IN MARYLAND SAVINGS-SHARE INSURANCE
CORPORATION OR FEDERAL HOME LOAN BANK.

A SAVINGS AND LOAN ASSOCIATION SHALL BECOME AND
PARTICIPATE AS A MEMBER IN THE MARYLAND SAVINGS-SHARE
INSURANCE CORPORATION OR A FEDERAL HOME LOAN BANK.