HARRY HUGHES, Governor

457

the board of directors is deleted as unnecessary
in light of the management authority given to a
board of directors under Maryland General
Corporation Law.

In subsections (c) and (d) of this section, the
phrase, "profits that have accrued since the last
allocation of profits" is substituted for "each
apportionment of profits" and "profits being
apportioned" for clarity.

"Board of Commissioners" and "savings and loan
association" are defined in § 9-101 of this
title.

9-319. ALLOCATION OF PROFITS.

(A)   IN GENERAL.

THE BOARD OF DIRECTORS OF ANY SAVINGS AND LOAN
ASSOCIATION SHALL ALLOCATE THE PROFITS OF THE ASSOCIATION,
AT LEAST ANNUALLY, AT THE TIMES THE BYLAWS PROVIDE.

(B)   PRIORITY.

THE BOARD OF DIRECTORS SHALL ALLOCATE THE PROFITS IN
THE FOLLOWING ORDER OF PRIORITY:

(1)       ANY ALLOCATION TO THE GENERAL RESERVE FUND
REQUIRED UNDER § 9-318 OF THIS SUBTITLE;

(2)       ANY ALLOCATION UNDER § 9-318(E) OF THIS
SUBTITLE TO SPECIAL RESERVES;

(3)       DIVIDENDS ON FREE SHARE ACCOUNTS UNDER §
9-401 OF THIS TITLE; AND

(4)       ANY RESIDUE OF THE PROFITS TO UNDIVIDED
PROFITS.

(C)       UNDIVIDED PROFITS.

UNDIVIDED PROFITS MAY BE USED IN THE SAME MANNER AS
PROFITS GENERALLY.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23, § 161DD.

In subsection (a) of this section, the phrase
"and as much more often as" is deleted as
included in the phrase "as the bylaws provide".

In subsection (b) of this section, the present
phrase "may establish or may have established" is
deleted as unnecessary.

"Savings and loan association" is defined in §