478

LAWS OF MARYLAND

Ch. 33

IN ANY TRANSACTION UNDER SUBSECTION (A) OF THIS SECTION
FOR WHICH A PREMIUM IS OWED TO A SAVINGS AND LOAN
ASSOCIATION BY A SHAREHOLDER, THE ASSOCIATION MAY:

(1)       REQUIRE PAYMENT OF THE FULL PREMIUM IN
ADVANCE;

(2)       DEDUCT THE FULL PREMIUM FROM THE AMOUNT
ADVANCED OR PAID TO THE MEMBER; OR

(3)       PERMIT PAYMENT OF THE PREMIUM IN
INSTALLMENTS TOGETHER WITH THE WEEKLY, MONTHLY, OR OTHER
INSTALLMENTS ON THE MEMBER'S SUBSCRIPTION.

(C)       INTEREST.

A SAVINGS AND LOAN ASSOCIATION MAY CHARGE INTEREST AT
THE RATE OF 6 PERCENT A YEAR ON THE FULL SUM ADVANCED,
LOANED, OR PAID IN A PURCHASE OR REDEMPTION OF ANY SHARE
THAT IS NOT FULL PAID.

(D)       SECURITY; TRANSFER OF INTEREST.

(1)       IN ANY ADVANCE, LOAN, PURCHASE, OR
REDEMPTION UNDER THIS SECTION, A SAVINGS AND LOAN
ASSOCIATION SHALL:

(I)       RECEIVE A TRANSFER OF ALL THE MEMBER'S
INTEREST IN THE MEMBER'S SHARES OF THE ASSOCIATION'S
PARTICIPATING OR NONPARTICIPATING STOCK; AND

(II)       REQUIRE SECURITY FOR THE PAYMENT OF
UNPAID INSTALLMENTS, PREMIUMS, INTEREST, OR PENALTIES DUE
THE ASSOCIATION BY A MEMBER OR BORROWER.

(2)       AS PROVIDED IN THE BYLAWS, SECURITY UNDER
PARAGRAPH (1) OF THIS SUBSECTION MAY BE BY:

(I)       MORTGAGE ON REAL PROPERTY;

(II)       JUDGMENT OF A COURT; OR

(III)       SUBJECT TO PARAGRAPH (3) OF THIS
SUBSECTION, A PLEDGE OF THE MEMBER'S SHARES.

(3)       A MEMBER MAY NOT   DRAW OUT MORE MONEY THAN IS
PAID IN ALREADY BY THE MEMBER ON      ALL SHARES HELD BY THE
MEMBER AT THE TIME OF ANY PLEDGE    UNDER PARAGRAPH (2)(III) OF
THIS SUBSECTION.

REVISOR'S NOTE: This section is new language that
combines without substantive change Art. 23, §§
149 and 154.

In subsection (a) of this section, the phrase in
present Art. 23, § 149(a), "at any time in