HARRY HUGHES, Governor                                          11

(B) THE STATE OR FEDERAL GOVERNMENT AGENCY OR
INSTRUMENTALITY RECEIVING A GRANT OF A SECURITY INTEREST IN OR
ASSIGNMENT OF A MORTGAGE BY A SAVINGS AND LOAN ASSOCIATION
PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL GIVE PROMPT
NOTIFICATION THEREOF TO THE STATE OR FEDERAL AGENCY THAT ISSUED
THE CHARTER TO THE ASSOCIATION.

Article - Financial Institutions

9-329.

In any distribution of assets on liquidation of a savings
and loan association, the priority of claims is as follows:

(1)  In a mutual association:

(i) General creditors and holders of savings
deposit accounts;

(ii) Holders of savings share accounts; and

(iii) Contributors to the initial general
reserve fund and expense fund under Subtitle 2 of this title; and

(2)  In a capital stock association:

(i) General creditors ( OTHER THAN THOSE WHO
ARE CAPITAL STOCKHOLDERS ) and holders of savings deposit
accounts;

(ii) Holders of savings share accounts;

(iii) Contributors to the initial general
reserve fund and expense fund under Subtitle 2 of this title
unless the funds were provided by paid-in surplus; and

(iv) Capital stockholders.

9-422.

A savings and loan association shall take title to all its
investments in its own name, EXCEPT AS MAY BE PERMITTED BY
REGULATION OR ORDER OF THE BOARD OF COMMISSIONERS TO ASSIGN OR
GRANT A SECURITY INTEREST IN COLLATERAL GIVEN BY A SAVINGS AND
LOAN ASSOCIATION TO ANY STATE OR FEDERAL GOVERNMENT AGENCY OR
INSTRUMENTALITY, INCLUDING THE MARYLAND DEPOSIT INSURANCE FUND
CORPORATION, A FEDERAL RESERVE BANK, OR THE A FEDERAL HOME LOAN
BANK, TO SECURE LOANS TO THE SAVINGS AND LOAN ASSOCIATION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is
hereby declared to be an emergency measure and necessary for the
immediate preservation of the public health and safety and having
been passed by a yea and nay vote supported by three-fifths of