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LAWS OF MARYLAND

Ch. 33

reserve fund, less the initial amount paid in,
reached 6 percent of the withdrawal value of the
association's savings liability, whichever first
occurred. By implication, when the function of
the initial amount terminated, it would be
returned to the incorporators.

As to the maintenance of the General Reserve
Fund, see § 9-318 of this title.

"Savings and loan association" is defined in §
9-101 of this title.

9-219. EXPENSE FUND.

(A)      ACCOUNT ESTABLISHED.

THE INCORPORATORS OF A SAVINGS AND LOAN ASSOCIATION
SHALL DEPOSIT TO THE CREDIT OF THE CHAIRMAN OF THE
INCORPORATORS CASH IN AN EXPENSE FUND IN AN AMOUNT EQUAL TO
AT LEAST 25 PERCENT OF THE MINIMUM INITIAL SUBSCRIPTION FOR
FREE SHARE ACCOUNTS.

(B)   USES.

THE EXPENSE FUND SHALL BE USED TO PAY:

(1)   ORGANIZATIONAL EXPENSES; AND

(2)   OPERATING EXPENSES UNTIL EARNINGS ARE
SUFFICIENT TO PAY THE OPERATING EXPENSES AND ANY DIVIDENDS
DECLARED ON SHARE ACCOUNTS.

(C)   DIVIDENDS; OWNERSHIP.

FOR THE PURPOSE OF PAYMENT OF DIVIDENDS, AN
INCORPORATOR'S CONTRIBUTION TO THE EXPENSE FUND IS IN EVERY
RESPECT A FREE SHARE ACCOUNT IN THE SAVINGS AND LOAN
ASSOCIATION.

(D)   ACCOUNT CLASSIFICATION.

(1)   THE RECORDS OF A SAVINGS AND LOAN
ASSOCIATION SHALL REFLECT ITS EXPENSE FUND.

(2)   EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, A CONTRIBUTION TO THE EXPENSE FUND IS NOT A
LIABILITY OF AN ASSOCIATION.

(E)   REPAYMENT AFTER INCORPORATION.

CONTRIBUTIONS OF THE INCORPORATORS TO THE EXPENSE FUND
HAY BE REPAID PRO RATA TO THEM FROM THE NET EARNINGS OF THE
SAVINGS AND LOAN ASSOCIATION AFTER PROVIDING FOR:

(1) ANY REQUIRED ALLOCATION TO THE GENERAL
RESERVE FUND; AND