HARRY HUGHES, Governor

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(e) Exception.

Subsections (c) and (d) of this section do not apply to any
portion of the initial general reserve fund that is provided from
the paid in surplus of a capital stock association.

9-219. RESERVED.

9-220. Expense fund.

(a)  Account established.

The incorporators of a savings and loan association shall
deliver to the credit of the chairman of the incorporators, as an
expense fund, cash in an amount equal to at least 25 percent of
the minimum initial subscriptions for savings accounts under §
9-218 of this subtitle.

(b)  Uses.

The expense fund shall be used to pay:

(1)  Organizational expenses; and

(2)  Operating expenses until earnings are sufficient
to pay the operating expenses and any dividends or interest on
savings accounts.

(c)  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 expense fund shall be treated
as a savings account in the savings and loan association.

(d)  Repayment after incorporation.

Contributions of the incorporators to the expense fund may
be repaid pro rata to them from the net earnings of the savings
and loan association after providing for the required allocation
to the general reserve fund and the payment of dividends or
interest on the savings accounts of at least 2 percent a year.

(e)  Liquidation.

If the savings and loan association liquidates before
repayment of the contributions, contributions shall be repaid pro
rata to the incorporators from the unexpended expense fund after
the payment of all:

(1)  Liquidation expenses;

(2)  Creditors; and

(3)  The withdrawal value of savings accounts.