HARRY HUGHES, Governor                                       497

CONVERTED ASSOCIATION WILL BE SOLD AND DISTRIBUTED; AND

(8) A STATEMENT THAT GUARANTY STOCK IS NOT
INSURED.

REVISOR'S NOTE: This section presently appears as CA §
6-217(c).

Throughout this section, the term "converting" or
"converted" is substituted for "mutual" where
appropriate.

The only other changes are in style.

"Guaranty stock", "guaranty stock association",
and "mutual association" are defined in § 9—101
of this title.

9-604. REVIEW BY DIVISION DIRECTOR.

THE DIVISION DIRECTOR:

(1)       SHALL REVIEW EACH APPLICATION FOR CONVERSION
TO A GUARANTY STOCK ASSOCIATION;

(2)       SHALL DETERMINE:

(I)       IF THE PROPOSED PLAN OF CONVERSION IS
FAIR TO THE MEMBERS OF THE CONVERTING ASSOCIATION; AND

(II)       THAT INSURANCE OF THE SAVINGS
ACCOUNTS WILL REMAIN IN EFFECT AFTER THE CONVERSION; AND

(3)       MAY REQUIRE ANY CHANGES THAT ARE NECESSARY
TO ENSURE FULL DISCLOSURE OF ALL MATERIAL FACTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6—217(d)(1).

In item (2)(i) of this section, "converting" is
substituted for "mutual".

In item (3) of this section, the phrase "require
any changes that are necessary" is substituted
for "require such changes in the materials
submitted in support of the application as are
necessary" for clarity.

Also in item (3) of this section, the phrase
(material factors) "relating to the conversion"
is deleted as unnecessary.

The present reference to the Division Director's
preliminary approval now appears in § 9—605 of
this subtitle.

"Division Director" and "guaranty stock