HARRY HUGHES, Governor

1081

(i) The initial subscription for savings
accounts; AND

(ii) The initial general reserve fund; and
(iii) (II) The expense fund.
(b) Capital stock association.

(1)  In addition to subsection (a) of this section,
the incorporators of a capital stock association shall establish
an initial subscription account for capital stock.

(2)  (i) A capital stock association may use its
paid-in surplus to provide amounts required for the initial
general reserve fund and the expense fund.

(ii) Any paid-in surplus amounts that are
allocated to the initial general reserve fund or the expense fund
under item (2)(i) of this subsection may not be used for
dividends to holders of capital stock or any other distribution
to holders of capital stock except on liquidation.

9-217. Form of surety bond.

The chairman of the incorporators shall deliver to the
Division Director a bond issued by a surety company that is
qualified to do business in this State. The bond shall:

(1)  Be in the aggregate amount of the following
funds, as may be applicable under § [9-216] 9-216.1 of this
subtitle:

(i) Initial subscription for savings accounts;

(ii) Initial general reserve fund;

(iii) (II) Expense fund; and

(iv) (III) Initial subscription for capital
stock account;

(2)  Name the Division Director as obligee;

(3)  Be in the form required by the Division Director;
and

(4)  Guarantee the safekeeping of the amounts
collected in the initial accounts:

(i) For delivery to the savings and loan
association if a certificate of incorporation is issued; or

(ii) If the attempt to incorporate is
unsuccessful, the return to the incorporators or subscribers of