HARRY HUGHES, Governor

467

(3) THE DATE ON WHICH THE DIVIDEND IS PAYABLE.

(B)       PAYMENT RESTRICTIONS.

THE BOARD OF DIRECTORS OF A SAVINGS AND LOAN
ASSOCIATION MAY NOT:

(1)       DECLARE A DIVIDEND ON A FREE SHARE ACCOUNT
UNLESS THE REQUIRED AMOUNT OF PROFITS HAS BEEN ALLOCATED TO
THE GENERAL RESERVE FUND UNDER § 9-318 OF THIS TITLE; OR

(2)       PAY ANY DIVIDEND FROM CAPITAL OR UNEARNED
SURPLUS.

(C)       ADDITIONAL DIVIDEND ON FREE SHARE ACCOUNT.

NOTWITHSTANDING SUBTITLE 3 OF THIS TITLE, A SAVINGS AND
LOAN ASSOCIATION MAY PAY AN ADDITIONAL DIVIDEND ON A FREE
SHARE ACCOUNT IF:

(1)       THE BOARD OF COMMISSIONERS AUTHORIZES A
DIVIDEND;

(2)       THE PAYMENT IS IN ACCORDANCE WITH THE RULES
AND REGULATIONS OF THE BOARD OF COMMISSIONERS;

(3)       THE DIVIDEND RATE IS NOT MORE THAN 1.5
PERCENT ANNUALLY; AND

(4)      THE ACCOUNT IS MAINTAINED AT A SPECIFIED
MINIMUM AMOUNT FOR A SPECIFIED MINIMUM TIME.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23, §
161FF (a), (c), and (d).

In subsection (c) (1) of this section, the present
phrase, "by rule or regulation allow ...", is
deleted as included in the phrase "{t}he Board of
Commissioners authorizes".

On the advice of the Board of Commissioners, the
General Assembly may wish to consider deleting
subsection (c)(3) of this section since it is
outdated and not in the best interests of free
shareholders of an association. Additionally, in
light of the authority granted in § 9-311 of this
title to parallel powers granted to federal
associations, this provision is obsolete in
practice.

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

9-402. NOTICE TO ACCOUNT HOLDERS.