1082

LAWS OF MARYLAND

Ch. 282

the respective amounts each paid to the initial subscription for
savings accounts, the initial general reserve fund, the initial
subscription for capital stock account, and less expenses, the
expense fund.

9-218. Initial subscription for savings accounts.

The incorporators of a savings and loan association shall
deliver to their chairman, as savings accounts in the
association, an aggregate amount in subscriptions of at least
[$500,000] $1,000,000 or any greater amount that the [Board of
Commissioners] DIVISION DIRECTOR determines is necessary to
conduct a safe and sound operation at the proposed location of
the principal office of the association in this State. The
aggregate amount constitutes the initial subscription for savings
accounts.

9-219. Initial general reserve fund.

(a) Account established.

The incorporators of a savings and loan association shall
deliver to the credit of the chairman of the incorporators in
cash an amount equal to 6 percent of the required initial
subscription for savings accounts as an initial general reserve

fund.

(b) Uses.

The initial general reserve fund shall be used only for the
purpose of absorbing losses.

(c) Termination of initial general reserve fund

The initial general reserve fund shall be maintained until
the first to occur of the following events:

[(1) Expiration of a period of 19 years;]

[(2)] (1) Until the general reserve fund, less the
initial general reserve fund, reaches [6] 5 percent of the
aggregate savings liability of the savings and loan association;
or

[(3)] (2) The [Board of Commissioners] DIVISION
DIRECTOR approves the termination of the initial general reserve
fund.

(d) Dividends or interest; ownership.

Except as to withdrawal rights, priority of claims on

liquidation, and the provisions of this section, an

incorporator's contribution to the initial general reserve fund
shall be treated as a savings account in the savings and loan
association.