1108                                          LAWS OF MARYLAND                                      Ch. 282

DIVIDENDS ON CAPITAL STOCK MAY NOT BE DECLARED OR PAID IF
THE ASSOCIATION, AFTER THE PAYMENT OF THE DIVIDENDS, WOULD NOT BE
IN COMPLIANCE WITH PARAGRAPH (1) OF THIS SUBSECTION SUBSECTION

(B)(1) OF THIS SECTION.

(D) NONCOMPLIANCE.

IN THE EVENT THAT AN ASSOCIATION IS NOT IN COMPLIANCE WITH
THE REQUIREMENTS OF THIS SECTION, THE DIVISION DIRECTOR MAY TAKE
ANY ACTION NECESSARY, AS AUTHORIZED UNDER THIS TITLE AND TITLE 9
OF THIS ARTICLE TO ASSURE THAT THE INTERESTS OF DEPOSITORS,
MEMBERS, STOCKHOLDERS, AND THE PUBLIC ARE PROTECTED.

9-325, 9-326. Reserved.

Part V. Capital Structure of Associations — Operations

[9-327. Reserves.

(a)  General reserve fund.

A savings and loan association shall maintain a general
reserve fund which shall be used only for the purpose of
absorbing losses.

(b)  Regulation of reserves.

The Board of Commissioners shall regulate the allocation of
profits to reserves and the maintenance of reserves by a savings
and loan association in a manner that will assure the public
interest is protected.

(c)  Special reserves.

(1)  A savings and loan association may maintain
special reserves.

(2)  The board of directors of a savings and loan
association shall determine charges to special reserves.]

9-328. Allocation of profits.

(A)  PROFITS.

[The] SUBJECT TO REGULATION OF THE DIVISION DIRECTOR, THE
board of directors of [any] EACH savings and loan association
shall allocate the profits of the association, at least annually,
at the times the bylaws provide.

(B)  GROSS INCOME; EXCLUSION.

THE BOARD OF DIRECTORS OF EACH SAVINGS AND LOAN ASSOCIATION
SHALL: