3098

LAWS OF MARYLAND

Ch. 856

necessary to protect the insurability of
associations by federal agencies.

Subsections (b)(2) and (3) are new provisions
added for clarity to conform to practice.

In subsection (d) of this section, the former
reference in Art. 23, § 161J to "representatives
of associations of this or other states" was
deleted as contradictory to the practice of the
Board and to rights between savings and loan
associations.

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

SUBTITLE 6. CONVERSIONS; EXTRAORDINARY ACTIONS.

PART I. MUTUAL ASSOCIATION CONVERSION TO CAPITAL STOCK
ASSOCIATION.

9-601. AUTHORITY TO CONVERT.

A MUTUAL ASSOCIATION MAY CONVERT TO A CAPITAL STOCK
ASSOCIATION IF:

(1)  ITS MEMBERS APPROVE;

(2)  ITS CHARTER IS AMENDED; AND

(3)  THE DIVISION DIRECTOR APPROVES.

COMMITTEE COMMENT: This section replaces former CA §
6-217(a), and the references in CA § 6-217(d)(2)
and (f) to approval by the Division Director and
the shareholders.

Item (1) of this section is added for clarity
although it is inherent in item (2).

As to member approval, see § 9-607 of this
subtitle. As to approval by the Division
Director, see § 9-608 of this subtitle.

"Division Director", "capital stock association",
and "mutual association" are defined in § 9-101
of this title.

9-602. APPLICATION TO CONVERT.

TO CONVERT TO A CAPITAL STOCK ASSOCIATION, A MUTUAL
ASSOCIATION SHALL DELIVER TO THE DIVISION DIRECTOR:

(1) A FILING FEE OF $750;

(2) AN APPLICATION FOR CONVERSION;