508

LAWS OF MARYLAND

Ch. 33

and loan association" as needed emphasis in this
subtitle.

9-626. RESERVED.

9-627. RESERVED.

PART IV. CONSOLIDATION; MERGER; TRANSFER OF ASSETS;
STATUTORY MERGER.

9-628. AUTHORITY TO MERGE, CONSOLIDATE, OR TRANSFER ASSETS.

A SAVINGS AND LOAN ASSOCIATION MAY CONSOLIDATE WITH,
MERGE INTO, OR TRANSFER ITS ASSETS TO ANY OTHER SAVINGS AND
LOAN ASSOCIATION OR ANY SAVINGS BANK IF:

(1)   IT COMPLIES WITH TITLE 3 OF THE CORPORATIONS
AND ASSOCIATIONS ARTICLE; AND

(2)   THE DIVISION DIRECTOR APPROVES THE PLAN OF
CONSOLIDATION, MERGER, OR TRANSFER OF ASSETS.

REVISOR'S NOTE: This section is new language that
combines without substantive change CA §§
6-224(a) and 6-225.

In this section, "transfer of assets" is added as
applying also to a savings bank. Present CA §
6—225 does not expressly include authority to
transfer assets. However, a transfer of assets
is by definition part of a statutory merger for
which present CA § 6—225 provides express
authority.

In this section, the present phrase "in Article
11, § 51, with respect to a savings institution"
is deleted as unnecessary.

Note that present CA § 6—225, which provides
authority for a savings and loan association to
merge into a "savings institution" (savings bank)
restates the prior law incorrectly. CA § 6—225
indicates that it is a revision of former Art.
23, § 161U(b); however, former Art. 23, § 161U(b)
provided only for an appeal procedure. The main
provision of former Art. 23, § 161U was
subsection (a), which provided for the authority
of a savings and loan association to merge,
consolidate, or transfer assets to an
"incorporated association of this State", which
clearly meant only another savings and loan
association, the same as the defined term is used
in this title.

Although Art. 11, § 51 provides authority to a
"savings institution" ("savings bank" in this
article) to merge or consolidate with, among