502

LAWS OF MARYLAND

Ch. 33

ASSOCIATION FOR THE PURPOSE OF CONSIDERING THE PROPOSAL TO
CONVERT.

(B) NOTICE.

THE SAVINGS AND LOAN ASSOCIATION SHALL GIVE NOTICE OF
THE MEETING AS PROVIDED IN TITLE 2, SUBTITLE 5 OF THE
CORPORATIONS AND ASSOCIATIONS ARTICLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6—228(b).

NOTE TO GENERAL ASSEMBLY: In subsection (a) of
this section, the term "shareholders" is
confusing since membership determines voting
rights and since it could be interpreted that
only a holder of a guaranty stock has a right to
attend the meeting and that the holder of a free
share account or any other kind of account does
not, contrary to voting rights granted to
members.

As to subsection (b) of this section, the present
reference to a notice that states the purpose is
deleted as included in the phrase "as provided in
Title 2, Subtitle 5...".

"Federal association" and "savings and loan
association" are defined in § 9-101 of this
article.

9-615. SHAREHOLDER APPROVAL.

A PROPOSAL TO CONVERT TO A FEDERAL ASSOCIATION SHALL BE
APPROVED BY THE AFFIRMATIVE VOTE OF A MAJORITY OF THE TOTAL
NUMBER OF VOTES ELIGIBLE TO BE CAST BY THE SHAREHOLDERS OF
THE SAVINGS AND LOAN ASSOCIATION.

REVISOR'S NOTE: This section is new language derived
without substantive change from the reference to
a majority vote required for shareholder approval
in CA § 6-228(b).

NOTE TO GENERAL ASSEMBLY: This section has the
inherent problem caused by the term "shareholder"
as it relates to voting rights of members, free
shareholders or stockholders. See § 9-614 and
its revisor's note.

In this section, the phrase "total number of
votes eligible" is substituted for "unredeemed
shares entitled" to conform to similar provisions
in this subtitle.

"Federal association" and "savings and loan
association" are defined in § 9—101 of this
title.