HARRY HUGHES, Governor

479

advance of the period of time at which it may
cease to exist, according to the plan contained
in the original articles of association" is
deleted as obsolete. The reference applied to
terminating associations, a type of savings and
loan association that no longer exists in this
State.

In subsection (a) (1) of this section, the phrase
"the money that a member would be entitled to
receive on a dissolution of the corporation" most
probably was intended to apply to a terminating
association. It is retained here since the
provision may represent a larger interest to
which the member is entitled, than does the
interest "at maturity" of the shares.

In subsection (a) (1) of this section, the phrase
in present Art. 23, § 149(a) "the series to which
he belongs, when said association has more than
one series of stock" is deleted as obsolete.
This applies to another early type of savings and
loan association, a serial association. Those
few serial associations still in existence in
this State include this provision in their
charter or bylaws.

Subsection (a) (3) of this section uses the term
"lend", but since in a mutual association, the
transaction described in this section is not
really a loan, the term is inaccurate. A member
of a mutual association has a common interest
with other members in the fund from which the
money is advanced.

As to subsection (b) of this section, the "agreed
price" in subsection (a) (2) of this section, is
in effect a premium charged by the association
since the shareholder agrees to discount the
anticipated value of tie shares for the right to
presently receive the value.

As to subsection (c) of this section, the term
"interest" is inaccurate in that the charge is
not really interest in a transaction under this
section. This charge does not have the same
basis for computation as would a true interest
charge. This difference in concept, which is
more in the nature of a dealing in a mutual or
partnership fund, exempts the transaction from
the laws of usury.

In subsection (d)(1) of this section, the
reference to "participating or nonparticipating
stock" is contradictory to the provision in §
9-312 of this title that an association may have
only one class of shares.