HARRY HUGHES, Governor

4117

STABILIZATION FUND OR TO THE MARYLAND DEPOSIT INSURANCE FUND
CORPORATION WITH THE PRIOR APPROVAL OF THE SECRETARY OF
LICENSING AND REGULATION AND THE FUND DIRECTOR, IN SUCH AMOUNTS
AND UPON SUCH TERMS AND CONDITIONS AS APPROVED SOLELY BY THE FUND
DIRECTOR;

(2)  THE CONSIDERATION FOR THE ISSUANCE OF A NET WORTH
CERTIFICATE MAY CONSIST OF ONE OR MORE OF MONEY, BOND
ANTICIPATION NOTES, OR OTHER OBLIGATIONS OF THIS STATE OR ANY
OTHER FORM OF CONSIDERATION APPROVED BY THE FUND DIRECTOR;

(3)  A NET WORTH CERTIFICATE MAY PROVIDE FOR THE
PAYMENT OF DIVIDENDS AND FOR REDEMPTION IN SUCH AMOUNTS, AT SUCH
TIMES AND UPON SUCH TERMS AND CONDITIONS AS APPROVED BY THE FUND
DIRECTOR;

(4)  A NET WORTH CERTIFICATE MAY BE CONVERTIBLE INTO
STOCK OF A CAPITAL STOCK ASSOCIATION;

(4) (5) THE RIGHT AND CLAIM OF ANY HOLDER OF A NET
WORTH CERTIFICATE HAS PRIORITY OVER ANY CLAIM OR RIGHT ARISING
OUT OF ANY OTHER EQUITY INTEREST IN THE SAVINGS AND LOAN
ASSOCIATION IN THE EVENT OF A CONSERVATORSHIP, RECEIVERSHIP,
LIQUIDATION, OR REORGANIZATION, SUBJECT TO THE PRIOR PAYMENT OF
ALL SAVINGS LIABILITIES, SAVINGS SHARE ACCOUNTS, SAVINGS DEPOSIT
ACCOUNTS, AND DEBT OBLIGATIONS;

(5) (6) DURING ANY PERIOD IN WHICH A CAPITAL STOCK
ASSOCIATION HAS ANY NET WORTH CERTIFICATE OUTSTANDING, IT MAY NOT
PAY ANY DIVIDEND OR MAKE A DISTRIBUTION OF ANY NATURE WITH
RESPECT TO ANY CAPITAL STOCK OF THE ASSOCIATION OR REPURCHASE OR
REDEEM ANY CAPITAL STOCK;

(6) (7) DURING ANY PERIOD IN WHICH A SAVINGS AND
LOAN ASSOCIATION HAS ANY NET WORTH CERTIFICATE OUTSTANDING, THE
SECRETARY OF LICENSING AND REGULATION MAY:

(I)  INCREASE THE NUMBER OF DIRECTORS OF THE
SAVINGS AND LOAN ASSOCIATION BY ANY NUMBER AND APPOINT DIRECTORS
TO FILL ANY NEWLY CREATED DIRECTORSHIP;

(II)  FIX THE COMPENSATION OF AND REMOVE,
WITHOUT CAUSE, ANY AND ALL DIRECTORS, OFFICERS, OR EMPLOYEES OF
THE SAVINGS AND LOAN ASSOCIATION AND APPOINT SUCCESSORS TO FILL
ANY VACANCY THAT EXISTS; AND

(III)  SUBJECT TO PRIOR APPROVAL BY THE GOVERNOR
AND WITHOUT OBTAINING THE RECOMMENDATION OF THE BOARD OF
DIRECTORS OR THE APPROVAL OF THE STOCKHOLDERS OR MEMBERS OF THE
ASSOCIATION, SELL, TRANSFER, OR ASSIGN ALL OR SUBSTANTIALLY ALL
OF THE ASSETS OF THE ASSOCIATION OR MERGE OR CONSOLIDATE THE
ASSOCIATION WITH OR INTO ANY OTHER ASSOCIATION OR CORPORATION, ON
SUCH TERMS AS THE SECRETARY DIRECTS; AND