HARRY HUGHES, Governor

469

"Board of commissioners", "guaranty stock", and
"savings and loan association" are defined in §
9-101 of this title.

9-404. SPECIFIC PURPOSE ACCOUNTS.

(A)   AUTHORITY TO FOREGO PAYMENT.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, A
SAVINGS AND LOAN ASSOCIATION NEED NOT PAY ANY DIVIDEND OR
INTEREST ON ANY SPECIFIC PURPOSE ACCOUNT, SUCH AS A
"CHRISTMAS" OR "VACATION" ACCOUNT.

(B)   RATE.

A SAVINGS AND LOAN ASSOCIATION SHALL PAY AT LEAST 3
PERCENT ANNUAL INTEREST OR DIVIDEND ON SAVINGS ACCOUNTS THAT
ARE FOR:

(1)   A PERIOD OF 1 YEAR OR LESS; AND

(2)   A SPECIFIC PURPOSE, SUCH AS "CHRISTMAS" OR
"VACATION" ACCOUNTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23, §§ 160
and 160 1/2.

In subsection (a) of this section, the present
phrases "from time to time" and "but pay
dividends on other funds in account with it
during the same dividend period" are deleted as
unnecessary.

In subsection (b) of this section, the word
"dividend" is added for consistency with this
subtitle.

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

9-405. SHALL ACCOUNTS.

AS TO ANY FREE SHARE ACCOUNT THAT HAS A WITHDRAWAL
VALUE OF LESS THAN $25, A SAVINGS AND LOAN ASSOCIATION:

(1)       MAY NOT CHARGE A PENALTY OR SERVICE CHARGE;
AND

(2)      NEED NOT PAY A DIVIDEND ON THE ACCOUNT.

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

"Savings and loan association" is defined in §