3094

LAWS OF MARYLAND

Ch. 856

WITH THE APPROVAL OF THE DIVISION DIRECTOR, A SAVINGS
AND LOAN ASSOCIATION MAY INVEST ITS FUNDS, OPERATE A
BUSINESS, MANAGE OR DEAL IN PROPERTY, OR TAKE ANY OTHER
ACTION OVER ANY PERIOD OF TIME THAT MAY BE REASONABLY
NECESSARY TO AVOID LOSS ON A LOAN OR INVESTMENT MADE OR
OBLIGATION CREATED IN GOOD FAITH.

COMMITTEE COMMENT: This section is a new provision
added as a necessary protection for investment
powers granted in this subtitle and is a common
provision in the law related to savings and loan
associations in other jurisdictions.

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

GENERAL COMMITTEE COMMENT:

Former Art. 23, § 149(a) which related to a
"terminating association", an early type of savings and loan
association that no longer exists in this State, was deleted
as obsolete.

Former Art. 23, § 149(b), which related to outdated
loan plan concepts, was deleted as obsolete.

Former Art. 23, § 154, which related to "permanent
associations" and outdated concepts as to loan plans, was
deleted as obsolete.

Former Art. 23, § 155, which provided the loans may be
made only in money and prohibits issuance of any evidence to
the contrary, was deleted as unnecessary and obsolete.

Former Art. 23, § 161Z(a-l), which provided that
savings and loan associations should give priority in their
investments to first mortgages for owner-occupied residences
was deleted on the advice of the Board of Commissioners and
the Division Director as being unnecessary in light of
federal tax laws and other provisions of this title.

Former Art. 23, § 161Z(g), which related to Benefits of
the National Housing Act, was deleted as an unnecessary
statement of the obvious.

SUBTITLE 5. EXAMINATIONS AND AUDITS.

9-501. "SAVINGS AND LOAN ASSOCIATION" DEFINED.

IN THIS SUBTITLE, "SAVINGS AND LOAN ASSOCIATION"
INCLUDES A SERVICE COMPANY OR SUBSIDIARY OF A SAVINGS AND
LOAN ASSOCIATION.

COMMITTEE COMMENT: This section is a new provision
added for clarity.