474

LAWS OF MARYLAND

Ch. 33

deleted as unnecessary.

As to subsection (c)(2) of this section, the
present phrase "no payment on account of such
application shall be made" is deleted as
unnecessary since the withdrawal request is
canceled.

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

As to "member", see § 9—301 of this title.

9-410. RESERVED.

9-411. RESERVED.

PART II. GENERAL PROVISIONS — OPERATIONS.

9-412. EVIDENCES OF OBLIGATION PROHIBITED.

(A)       GENERAL PROHIBITION.

A SAVINGS AND LOAN ASSOCIATION:

(1)   MAY MAKE LOANS ONLY IN MONEY;

(2)   MAY NOT ISSUE ANY EVIDENCE OF AN OBLIGATION
TO OR FOR THE BENEFIT OF A MEMBER; AND

(3)  MAY NOT ACCEPT IN ANY BORROWING FROM A
MEMBER ANY EVIDENCE OF AN OBLIGATION IN PLACE OF MONEY.

(B)      INVALIDITY.

ANY OBLIGATION ISSUED IN VIOLATION OF THIS SECTION,
TOGETHER WITH ANY INSTRUMENT EVIDENCING SECURITY FOR THE
OBLIGATION, IS VOID.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art...23, § 155.

In this section, the phrase "evidence of an
obligation" is substituted for "promissory note,
bill or obligation of any kind".

Subsection (a) (3) of this section is new language
substituted for the phrase "or borrow therefrom
in lieu of money,...".

Subsection (b) of this section is new language
substituted for the present reference to "all
notes, bills or obligations of any sort issued by
any such association to or for the use or the
benefit of any member or borrower in lieu of
money, and all deeds, mortgages or other
securities whatsoever, given to secure the same,