3104

LAWS OF MARYLAND

Ch. 856

(B) EFFECTIVE.

WHEN THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
ACCEPTS THE CHARTER AMENDMENTS FOR RECORD, THE MUTUAL
ASSOCIATION BECOMES A CAPITAL STOCK ASSOCIATION.

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

In subsection (a) of this section, "Final order
of approval" was substituted for "letter of
formal approval" in keeping with administrative
procedure.

In subsection (b) of this section, the term
"accepts" is substituted for "filing" as the more
correct event that signifies incorporation.

Also in subsection (b), the phrase "the mutual
association becomes a capital stock association"
was substituted for "conversion shall take
effect" to conform to similar provisions
elsewhere in the Code.

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

9-611. RESERVED.

9-612. RESERVED.

PART II. STATE-CHARTERED CONVERSION TO FEDERALLY CHARTERED.

9-613. AUTHORITY TO CONVERT.

A MARYLAND SAVINGS AND LOAN ASSOCIATION MAY CONVERT TO
A FEDERAL ASSOCIATION IF:

(1)  IT IS ELIGIBLE TO BECOME A MEMBER OF THE
FEDERAL HOME LOAN BANK SYSTEM;

(2)  ITS MEMBERS APPROVE;

(3)  WITHIN 6 MONTHS AFTER MEMBER APPROVAL, THE
ASSOCIATION ACTS TO CONVERT IN THE MANNER REQUIRED BY
FEDERAL LAW; AND

(4)  IT RECEIVES A FEDERAL CHARTER.

COMMITTEE COMMENT: This section replaces the references
in former CA § 6-228 to the authority to convert,
shareholder approval, action to convert, and
receipt of a federal charter.

In this section, the term "Maryland" was added to
the defined term "savings and loan association"