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LAWS OF MARYLAND

Ch. 33

ASSOCIATION WILL CONTINUE TO BE CONDUCTED HONESTLY AND
EFFICIENTLY, IN ACCORDANCE WITH THIS TITLE, THE DIVISION
DIRECTOR SHALL APPROVE THE PLAN OF SALE OR TRANSFER.

REVISOR'S NOTE: This section presently appears as CA §
6-216.

In subsection (a) of this section, the phrase
"individually or" is added as the presumed
legislative intent to make clear that activity
under this section includes the actions of one
person as well as concerted efforts of two or
more persons, and the term "person" is
substituted for "an individual or legal entity".

In subsection (b) of this section "of this State"
is deleted as included in "the United States".

Also in subsection (b) of this section, the
phrase "{a} person who is not a resident of the
United States may not acquire control ..." is
substituted for the phrase "{a} 'controlling
person' shall be a resident of this State or the
United States", which is ambiguous since it could
be interpreted to wean that having acquired
control a person became a resident or citizen.

In subsection (d) (1) of this section, the present
phrase "engage or" is deleted as included in
"participate".

In subsection (d)(2)(i) of this section, the
present phrase "of such business or transaction
and the nature of the controlling person's
interest" is deleted as included in the business
understanding of "full disclosure".

In subsection (d)(2)(ii) of this section, the
phrase "recorded vote" is substituted for "and
such approval is recorded in the minutes".

Also in subsection (d) (2) (ii) of this section,
the phrase "disinterested directors of the
association" is substituted for "any director who
has any financial interest in or who is an
employee or director of the controlling person
abstaining".

As to subsection (b) of this section, the General
Assembly may wish to consider whether the term
"citizen" should be substituted for "resident",
as more in keeping with the restrictive intent of
this section.

"Division Director", "guaranty stock" and
"guaranty stock association" are defined in §
9-101 of this title.