1094

LAWS OF MARYLAND

Ch. 282

(II) OF PRESENT OR POTENTIAL ADVANTAGE TO THE
ASSOCIATION.

(2) NOTHING IN THIS SUBSECTION MAY BE CONSTRUED TO
AFFECT ANY CONTRACTUAL OBLIGATIONS ENTERED INTO BEFORE JUNE 1,
JANUARY 15, 1986 BY A DIRECTOR, OFFICER, OR CONTROLLING PERSON.

(I) EMPLOYMENT.

AN ASSOCIATION, ITS HOLDING COMPANY, SUBSIDIARIES, OR
AFFILIATES MAY EMPLOY ITS OFFICERS, DIRECTORS, AND CONTROLLING
PERSONS IN A CAPACITY OTHER THAN AS OFFICER OF OR DIRECTOR ONLY
IF THE EMPLOYMENT:

(1)  DOES NOT CREATE A CONFLICT OF INTEREST;

(2)  IS FOR REASONABLE COMPENSATION; AND

(3)  IS IN A CAPACITY IN WHICH THE OFFICERS,
DIRECTORS, AND CONTROLLING PERSONS ARE QUALIFIED.

(J) AVOIDING PROHIBITIONS PROHIBITED.

AN ASSOCIATION MAY NOT MAKE A LOAN TO, OR TRANSACT BUSINESS
WITH, ANY PERSON OR ENTITY FOR THE PURPOSE OF FRUSTRATING OR
AVOIDING ANY PROHIBITION IN THIS SECTION OR ANY REGULATIONS
ADOPTED UNDER THIS SECTION.

(K) PENALTY.

ANY CONTROLLING PERSON, DIRECTOR, OFFICER, EMPLOYEE, OR
ATTORNEY WHO KNOWINGLY VIOLATES OR CAUSES A VIOLATION OF THIS
SECTION ON CONVICTION IS SUBJECT TO IMPRISONMENT IN THE
PENITENTIARY FOR A PERIOD NOT EXCEEDING MORE THAN 10 YEARS BUT
NOT LESS THAN 1 YEAR, OR A FINE OF NOT LESS THAN $10,000 NOR MORE
THAN $100,000, OR BOTH.

9-308. Fidelity bond.

(A)  FIDELITY BOND.

A savings and loan association shall provide a FIDELITY
bond, in the amount that the [Board of Commissioners] DIVISION
DIRECTOR requires, to cover each director, officer, EMPLOYEE, OR
agent[, or employee] of the association who has control over or
access to cash or securities of the association.

(B)  REMOVAL OF PERSON.

IF A PERSON FAILS TO FURNISH OR QUALIFY FOR THE BOND

REQUIRED BY SUBSECTION (A) OF THIS SECTION,   THE ASSOCIATION SHALL

REMOVE THE PERSON FROM THE POSITION HELD BY  THE PERSON WITH THE
ASSOCIATION.

9-309. Offices.