1102

LAWS OF MARYLAND

Ch. 282

(2)  Existing savings share accounts in the
association become savings deposit accounts;

(3)  The conversion, for the purpose of computing
interest on its savings accounts, shall be considered to have
taken place on the immediately preceding regular distribution
date if the effective date of the conversion to a deposit
association is made on a date other than the date on which an
association regularly distributes dividends; and

(4)  The holder of any outstanding right to receive
from the association a savings share account shall receive
instead a savings deposit account.

9-317, 9-318. Reserved.

Part IV. Capital Structure of Associations—-Capital
Stock Association.

9-319. Power to issue capital stock.

If its charter provides, a savings and loan association may
issue capital stock.

9-320. General provision.

A capital stock association:

(1)  Shall obtain the prior written approval of the
Division Director for each prospectus, offering circular, or
advertisement offering capital stock for sale or subscription;

(2)  Shall include in each prospectus offering capital
stock a statement that shares of capital stock are not insured by
the Maryland [Savings-Share] DEPOSIT Insurance FUND Corporation
or the Federal Savings and Loan Insurance Corporation;

(3)  Except for stock issued under a plan of
consolidation, merger, or reorganization approved under § [9-628]
9-623 of this title, shall require that the consideration for its
capital stock be paid in cash and in an amount not less than the
par value of the stock;

(4)  May issue stock options under a stock option plan
approved by the Division Director;

(5)  May not grant any loan which is secured in whole
or in part by shares of its capital stock; and

(6)  Unless the Division Director has given prior
written approval, may not repurchase shares of capital stock for
its own account.

9-321. Future issuance of capital stock.