452

LAWS OF MARYLAND

Ch. 33

the last clause of Art. 23, § 154.

As to shares that are "redeemed, advanced,
loaned, or purchased", see § 9-418 of this title.

The presumed intent of this subsection, raising
more capital by being able to issue more shares,
appears to be obviated by subsection (b) of this
section.

In this subsection, the present reference in Art.
23, § 149(a) to the power to issue fall paid—up
shares of stock is deleted as unnecessary since
the power is granted under Maryland General
Corporation Law.

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

9-313. FIXED RATE PROHIBITED.

(A)   DEFINITE RATE SECURITIES PROHIBITED.

A SAVINGS AND LOAN ASSOCIATION MAY NOT ISSUE, SELL, OR
NEGOTIATE ANY TYPE OF INVESTMENT SECURITY OTHER THAN A FREE
SHARE ACCOUNT, GUARANTY STOCK, OR A "CHRISTMAS" OR "VACATION
CLUB" FUND IN ACCOUNT WITH IT.

(B)       FREE SHARE ACCOUNT.

EXCEPT AS PROVIDED IN § 9-401 OF THIS TITLE, A SAVINGS
AND LOAN ASSOCIATION MAY NOT AGREE TO PAY ANY FIXED RATE OR
AMOUNT, INCLUDING ADDITIONAL DIVIDENDS, ON A FREE SHARE
ACCOUNT.

(C)       CONSTRUCTION.

THIS SECTION DOES NOT PROHIBIT A SAVINGS AND LOAN
ASSOCIATION FROM BORROWING MONEY FROM BANKS, OR OTHER
SIMILAR BORROWING BY AN ASSOCIATION.

REVISOR'S NOTE: This section presently appears as CA §
6-212(a)(3) and Art. 23, § 1611.

In subsection (a) of this section, the present
phrase "advertise for sale" is deleted as
included in the term "sell".

Also in subsection (a) of this section, the
present phrase "either to members or the public"
is deleted as unnecessary..

In subsection (b) of this section, the phrase
"may not agree to pay" is substituted for "may
not pay" as being the intent of this section.

The second sentence of Art. 23, § 161Y is deleted