HARRY HUGHES, Governor

451

is ambiguous since, as stated, it may be inferred
that the phrase means one class of shares or one
class of stock, but not both shares and stock.
However, § 9—323 of this subtitle provides that a
guaranty stock association may issue guaranty
stock "in addition to its free share accounts".

Also as to paragraph (1) of this subsection, note
that a mutual association may not issue stock in
the sense the word takes on after the
introduction of guaranty stock into the law that
relates to savings and loan associations.

In paragraph (1) of this subsection, the
incorporated reference from § 9—323 of this
subtitle — "may issue one class of guaranty
stock in addition to its free share accounts" —
presents the issue of whether "free share
accounts" represent more than the one class of
shares required under this section.. A free share
account differs enough from the borrower's share,
also issued by mutual associations, to be
possibly a different class of share.

The balance of CA § 6—212(a) now appears in §
9-313 of this subtitle.

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

(B)       UNLIMITED NUMBER OF SHARES.

NOTWITHSTANDING ANY PROVISION IN ITS CHARTER ON THE
NUMBER OF SHARES, A SAVINGS AND LOAN ASSOCIATION MAY ACCEPT
SUBSCRIPTIONS AND PAYMENT FOR AN UNLIMITED NUMBER OF ITS
FREE SHARES WITHOUT OTHER CORPORATE ACTION.

REVISOR'S NOTE: This subsection presently appears as CA
§ 6-212(b).

In this section, the term "free shares" is
substituted for the present term "shares" to
avoid conflict with strict understandings in
Maryland General Corporation Law as to the number
of shares authorized by a corporation's charter.

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

(C)       CANCELED SHARES.

ANY SHARES OF STOCK OF A SAVINGS AND LOAN ASSOCIATION
THAT HAVE BEEN REDEEMED, ADVANCED, LOANED, OR PURCHASED BY
THE ASSOCIATION SHALL BE CONSIDERED REDEEMED SHARES AND
SHALL BE CANCELED.

REVISOR'S NOTE: This subsection presently appears as