1092                                          LAWS OF MARYLAND                                      Ch. 282

(I) MAY NOT EXCEED 80 PERCENT OF THE APPRAISED
VALUE OF THE BORROWER'S PRINCIPAL RESIDENCE: OR

(II) MAY EXCEED 80 PERCENT OF THE APPRAISED
VALUE IF:

1. THE DIFFERENCE BETWEEN THAT PERCENTAGE
AND THE TOTAL AMOUNT OF THE LOAN OR LOANS DO NOT EXCEED 15
PERCENT; AND

2. THE DIFFERENCE IS INSURED BY AN AGENCY
OF THE FEDERAL GOVERNMENT OR A PRIVATE MORTGAGE INSURANCE
COMPANY.

(4) ANY LOAN PERMITTED BY PARAGRAPHS (I) AND (2) OF
THIS SECTION SHALL COMPLY WITH THE FOLLOWING REQUIREMENTS:

(I) THE LOANS SHALL BE IN THE ORDINARY COURSE
OF BUSINESS OF THE ASSOCIATION OR SUBSIDIARY, MAY NOT INVOLVE
MORE THAN THE NORMAL RISK OF COLLECTIBILITY OR PRESENT OTHER
UNFAVORABLE FEATURES. AND MAY NOT EXCEED THE LOAN AMOUNT THAT
WOULD BE AVAILABLE TO MEMBERS OF THE GENERAL PUBLIC OF SIMILAR
CREDIT STATUS APPLYING FOR LOANS;

(II) THE LOANS SHALL BE APPROVED IN ADVANCE BY
A RESOLUTION DULY ADOPTED AFTER FULL DISCLOSURE BY AT LEAST A
MAJORITY OF THE ENTIRE BOARD OF DIRECTORS OF THE ASSOCIATION. BUT
NOT INCLUDING ANY DIRECTOR WHO HAS AN INTEREST IN THE LOAN
TRANSACTION:

(III) THE DISCLOSURE OF THE LOAN TRANSACTIONS
SHALL INCLUDE WHETHER THE LOAN IS MADE ON SUBSTANTIALLY THE SAME
TERMS, INCLUDING INTEREST RATE AND COLLATERAL, AS THOSE
PREVAILING AT THE TIME FOR COMPARABLE LOANS TO MEMBERS OF THE
GENERAL PUBLIC;

(IV) THE INTEREST RATE ON THE LOANS SHALL BE AT
LEAST 100 BASIS POINTS ABOVE THE CURRENT COST OF FUNDS OF THE
ASSOCIATION, AND THE RESOLUTION REQUIRED BY SUBPARAGRAPH (II) OF
THIS PARAGRAPH SHALL SET FORTH THE ASSOCIATION'S CURRENT COST OF
FUNDS, INCLUDING THE ELEMENTS OF ITS COMPUTATION; AND

(V) IN THE CASE OF A LOAN SECURED BY A SAVINGS
ACCOUNT. THE INTEREST RATE SHALL BE AT LEAST 100 BASIS POINTS
ABOVE THE RATE OF RETURN ON THE SAVINGS ACCOUNT. AND THE BORROWER
MAY NOT WITHDRAW FUNDS FROM THE ACCOUNT BELOW THE LEVEL OF THE
AMOUNT OF THE OUTSTANDING BALANCE OF THE LOAN.

(E) PROCURING LOANS.

(1) A CONTROLLING PERSON, DIRECTOR, OFFICER,
EMPLOYEE, OR AGENT OF A SAVINGS AND LOAN ASSOCIATION, OR A MEMBER
OF ANY OF THEIR IMMEDIATE FAMILIES, DIRECTLY OR INDIRECTLY MAY
NOT ASSENT TO RECEIVE, OR RECEIVE ANY MONEY OR OTHER PROPERTY OF
VALUE AS A FEE, COMMISSION, GIFT, OR REMUNERATION OF ANY TYPE