HARRY HUGHES, Governor

535

THE CORPORATION MAY:

(1)       BORROW MONEY AND OTHERWISE INCUR OBLIGATIONS
FOR ANY OF ITS PURPOSES;

(2)       ISSUE ITS SECURED OR UNSECURED BONDS,
DEBENTURES, NOTES, OR OTHER EVIDENCES OF OBLIGATION; AND

(3)       SECURE THESE OBLIGATIONS BY MORTGAGE,
PLEDGE, OR OTHER LIEN ON ALL OR ANY PART OF ITS PROPERTY.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from Art. 23, §
161NN(b)(iii).

Throughout this subsection, the term "obligation"
is substituted for "indebtedness" to avoid the
implication that these items necessarily are
"debts" in the constitutional sense of Art. III,
§ 34 of the State Constitution. See also,
revisor's note to TR § 3—201.

In item (3) of this subsection, the present
specific reference to "rights" and "privileges"
are deleted as unnecessary.

"Corporation" is defined in § 10-101 of this
title.

"Mortgage" is defined in § 1-101 of this article.

10-105. INSURANCE OF ACCOUNTS.

(A)   CENTRAL INSURANCE FUND.

THE CORPORATION SHALL ESTABLISH A CENTRAL INSURANCE
FUND AND THROUGH THE FUND SHALL INSURE THE FREE-SHARE
SAVINGS ACCOUNTS OF MEMBERS.

(B)       AMOUNT PROTECTED.

THE AMOUNT OF LOSS TO BE PROTECTED AGAINST FOR EACH
SEPARATE SHARE SAVINGS ACCOUNT HAY NOT EXCEED THE LIMIT
ESTABLISHED FROM TIME TO TIME IN THE CORPORATION'S BYLAWS,
RULES, AND REGULATIONS. THIS LIMIT MAY NOT EXCEED BY MORE
THAN $10,000 THE AMOUNT OF PREVAILING INSURANCE AVAILABLE
FROM THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 23, §
161NN(b)(ii) and the fourth sentence of § 161SS.

Subsection (a) of this section is revised to
clarify that providing insurance is a duty of the
Corporation rather than a power. Although
present Art. 23, § 161NN(b)(ii) indicated this