1106

LAWS OF MARYLAND

Ch. 282

OF STOCK HELD BY EACH SHAREHOLDER, AND THE OCCUPATION OF EACH
SHAREHOLDER. STOCKHOLDER.

(C) CONFIDENTIALITY.

EXCEPT AS PROVIDED IN § 9-306(B)(2)(II) OF THIS SUBTITLE,
THE DIVISION DIRECTOR SHALL KEEP CONFIDENTIAL THE LIST OF
STOCKHOLDERS.

9-324. RESERVES.

(A) GENERAL RESERVE FUND.

(1) EACH SAVINGS AND LOAN ASSOCIATION SHALL MAINTAIN
A GENERAL RESERVE FUND WHICH SHALL BE USED SOLELY FOR THE PURPOSE
OF ABSORBING LOSSES.

(2) THE GENERAL RESERVE FUND SHALL:

(I) BE IN ADDITION TO ANY OTHER RESERVES

ESTABLISHED, INCLUDING THOSE UNDER GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES; AND

(II) CONSIST OF THE FOLLOWING:

1. A RESERVE FOR CONTINGENT LOSSES; AND

2. A RESERVE FOR BAD DEBTS.

(B) BUILDING THE RESERVE FUND.

(1) UNTIL THE AGGREGATE OF THE RESERVE FUNDS REACHES
AT LEAST 5 PERCENT OF THE AGGREGATE LIABILITY OF THE ASSOCIATION,
EACH SAVINGS AND LOAN ASSOCIATION ANNUALLY SHALL SET ASIDE AT
LEAST 5 PERCENT OF THE NET EARNINGS TO THE GENERAL RESERVE FUND.

(2) A SAVINGS AND LOAN ASSOCIATION SHALL PAY ALL
LOSSES OUT OF THE RESERVE FUND UNTIL THE RESERVE FUND IS
EXHAUSTED.

(3) WHEN THE AGGREGATE AMOUNT OF THE RESERVE FUND

FALLS BELOW 5 PERCENT OF THE AGGREGATE LIABILITY OF AN

ASSOCIATION, THE ASSOCIATION SHALL REPLENISH THE RESERVE FUND BY
ANNUAL APPROPRIATIONS OF AT LEAST 5 PERCENT OF THE NET EARNINGS

UNTIL THE RESERVE FUND REACHES THE AMOUNT REQUIRED UNDER

PARAGRAPH (1) OF THIS SUBSECTION.

(C) STOCK DIVIDENDS.

A STOCK ASSOCIATION MAY NOT PAY DIVIDENDS ON ITS STOCK IF
THE RESERVE FUND AMOUNTS TO LESS THAN 5 PERCENT OF AGGREGATE
LIABILITY OF THE ASSOCIATION.

9-324. NET WORTH REQUIREMENT.