HARRY HUGHES, Governor

135

9-217. ESCROW ACCOUNT.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL EXECUTE AND DELIVER IN ESCROW TO THE DIVISION DIRECTOR
ANY ASSIGNMENT OR PLEDGE OF FREE SHARE ACCOUNTS IN THE
ASSOCIATION THAT THE DIRECTOR REQUIRES AS A GUARANTY
AGAINST:

(1)   ANY OPERATING DEFICIT; AND

(2)   ANY LOSSES THAT EXCEED OTHER RESERVES.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6-204(c).

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

9-218. INITIAL GENERAL RESERVE FUND.

(A)       ACCOUNT ESTABLISHED.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL DELIVER TO THE CREDIT OF THE CHAIRMAN OF THE
INCORPORATORS, IN CASH, AN AMOUNT EQUAL TO 6 PERCENT OF THE
REQUIRED INITIAL SUBSCRIPTION FOR FREE SHARE ACCOUNTS AS AN
INITIAL GENERAL RESERVE FUND.

(B)       TERMINATION OF INITIAL GENERAL RESERVE FUND.

THE INITIAL GENERAL RESERVE FUND SHALL BE MAINTAINED
UNTIL THE FIRST OF THE FOLLOWING OCCURS:

(1)       EXPIRATION OF A PERIOD OF 5 YEARS; OR

(2)       THE GENERAL RESERVE FUND, LESS THE INITIAL
GENERAL RESERVE FUND, REACHES AT LEAST 6 PERCENT OF THE
AGGREGATE WITHDRAWAL VALUE OF THE FREE SHARE ACCOUNTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6—204(b) and
Art. 23, § 161M(a)(2).

In subsection (a) of this section, the term
"deliver" is substituted for "pay" for

consistency in similar transactions. See § 9-216
of this subtitle and its re visor's note.

In subsection (b) (2) of this section, the tern
"aggregate" withdrawal value is added for
clarity.

Former Art. 23, § 161M(a)(2) provided that the 6
percent amount be "credited" to the general
reserve fund for 5 years or until the general