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LAWS OF MARYLAND

Ch. 33

A SAVINGS AND     LOAN ASSOCIATION SHALL GIVE TO EACH

ACCOUNT HOLDER ON OPENING AN ACCOUNT AND SUBSEQUENTLY ON
DEMAND OF THE ACCOUNT HOLDER A WRITTEN NOTICE AS TO:

(1)   THE ANNUAL DIVIDEND OR INTEREST RATE;

(2)   THE   METHOD OF COMPUTING THE DIVIDEND OR
INTEREST;

(3)   THE     DATES WHEN A DIVIDEND OR INTEREST IS
CREDITED;

(4)   THE MINIMUM BALANCE REQUIRED TO EARN A
DIVIDEND OR INTEREST;

(5)   ANY PENALTY FOR WITHDRAWAL;

(6)   THE DATE WHEN THE ACCOUNT BEGINS TO EARN A
DIVIDEND OR INTEREST; AND

(7)   WHETHER A DIVIDEND OR INTEREST IS
COMPOUNDED.

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

In item (6) of this section, "account" is
substituted for "deposit" to include any
borrower's share account that may be entitled to
dividends.

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

9-403. DIVIDENDS OF GUARANTY STOCK.

A SAVINGS AND LOAN ASSOCIATION MAY NOT PAY DIVIDENDS ON
GUARANTY STOCK UNLESS DIVIDENDS ARE DECLARED AND PAID ON
EACH FREE SHARE ACCOUNT AT A RATE THAT IS:

(1)   AT LEAST 2 PERCENT; AND

(2)   IN ACCORDANCE WITH THE RULES AND REGULATIONS
OF THE BOARD OF COMMISSIONERS.

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

In this section, the present provision in Art.
23, § 161FF{e) that set a 3.5 percent ceiling on
a dividend rate is deleted as archaic, not
enforced, and not in the best interests of the
free share account holders that it was designed
to protect.