3100

LAWS OF MARYLAND

Ch. 856

(7)  AN INDEPENDENT EVALUATION OF THE CONVERTING
ASSOCIATION'S PRO FORMA MARKET VALUE AS CONVERTED TO SUPPORT
THE OFFERING OF STOCK TO THE CONVERTING ASSOCIATION'S
MEMBERS;

(8)  THE BUSINESS PURPOSES TO BE ACCOMPLISHED BY
THE CONVERSION;

(9) THE MANNER IN WHICH CAPITAL STOCK IN THE
CONVERTED ASSOCIATION WILL BE SOLD AND DISTRIBUTED; AND

(10)  A STATEMENT THAT CAPITAL STOCK IS NOT
INSURED.

COMMITTEE COMMENT: This section replaces former CA §
6-217(c).

Throughout this section, the term "converting" or
"converted" was substituted for the former term
"mutual" where appropriate.

Items (4) and (5) of this section are new
provisions added to protect the interests of
members in a converting association.

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

9-604. REVIEW BY DIVISION DIRECTOR.

THE DIVISION DIRECTOR:

(1)  SHALL REVIEW AN APPLICATION FOR CONVERSION
TO A CAPITAL STOCK ASSOCIATION;

(2)  SHALL DETERMINE:

(I)  WHETHER THE PLAN IS FAIR TO THE
MEMBERS OF THE CONVERTING ASSOCIATION; AND

(II)  THAT INSURANCE OF THE SAVINGS
ACCOUNTS WILL REMAIN IN EFFECT AFTER THE CONVERSION; AND

(3)  MAY REQUIRE ANY CHANGES THAT ARE NECESSARY
TO ENSURE FULL DISCLOSURE OF ALL MATERIAL FACTS.

COMMITTEE COMMENT: This section replaces former CA §
6-217(d)(l).

In item (2)(i) of this section, "converting" was
substituted for "mutual".

In item (3) of this section, the phrase "require
any changes ... necessary" was substituted for
"require such changes in the materials submitted
in support of the application as are necessary"
as having the same meaning.