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LAWS OF MARYLAND

Ch. 33

OR SUBSCRIPTION;

(2)       SHALL INCLUDE IN EACH PROSPECTUS OFFERING
GUARANTY STOCK A STATEMENT THAT SHARES OF GUARANTY STOCK ARE
NOT INSURED BY THE MARYLAND SAVINGS-SHARE INSURANCE
CORPORATION OR THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION;

(3)       MAY NOT PAY A COMMISSION TO ANY PERSON FOR
OBTAINING ANY SUBSCRIPTION FOR OR SALE OF GUARANTY STOCK
EXCEPT IN CONNECTION WITH AN UNDERWRITING BY ONE OR MORE
BROKERS OR DEALERS REGISTERED UNDER THE SECURITIES EXCHANGE
ACT OF 1934;

(4)       MAY NOT RECEIVE AS CONSIDERATION FOR THE
GUARANTY STOCK ANY AMOUNT LESS THAN:

(I) THE PAR VALUE OF THE GUARANTY STOCK,
WHICH AMOUNT SHALL BE IN CASH; OR

(II) THE CONSIDERATION PROVIDED UNDER A
PLAN OF CONSOLIDATION, MERGER, OR REORGANIZATION APPROVED
UNDER § 9-631 OF THIS TITLE;

(5)       MAY ISSUE STOCK OPTIONS UNDER A STOCK OPTION
PLAN APPROVED BY THE DIVISION DIRECTOR UNDER § 9-326 OF THIS
SUBTITLE.

(6)       MAY NOT GRANT ANY LOAN THAT IS SECURED IN
WHOLE OR IN PART BY SHARES OF GUARANTY STOCK; AND

(7)       UNLESS THE DIVISION DIRECTOR HAS GIVEN PRIOR
WRITTEN APPROVAL, MAY NOT REPURCHASE SHARES OF GUARANTY
STOCK FOR ITS OWN ACCOUNT.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA §§

6-213(c)(2), (3), and (4), 6-214(b)(6), and
6-215.

In items (1) and (2) of this section, the phrase
"offering guaranty stock" is substituted for the
phrase "relating to subscriptions for guaranty
stock".

In item (1) of this section, the phrase "for sale
or subscription" is added for clarity.

In item (4) of this section, the phrase "may not
receive as consideration ... for any amount ..."
is substituted for the phrase "net amount to be
received ...shall not be".

"Division Director", "guaranty stock",     "guaranty

stock association", and "savings     and loan

association" are defined in § 9-101 of this
title.