HARRY HUGHES, Governor

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(3) Provide for penalties in a savings account
contract, subject to approval of the [Board of Commissioners]
DIVISION DIRECTOR.

(b)  Approval by directors.

The board of directors of a savings and loan association, by
resolution, shall determine as to dividends or interest on
savings accounts:

(1)  The rate;

(2)  The method of calculation; and

(3)  The payment date.

(c)  Payment restrictions.

Dividends or interest on savings accounts may be paid only
from current earnings, earned surplus, the expense fund, or as
otherwise provided in this [Code] TITLE.

(D) UNIFORM SCHEDULE OF RATE CEILINGS.

(1) THE DIVISION DIRECTOR MAY ADOPT A UNIFORM

SCHEDULE OF RATE CEILINGS SPECIFYING THE MAXIMUM DIVIDENDS OR
INTEREST RATE THAT AN ASSOCIATION IS PERMITTED TO PAY ON SAVINGS

ACCOUNTS.

(2) BEFORE ADOPTING A UNIFORM SCHEDULE OF RATE

CEILINGS UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE DIVISION
DIRECTOR SHALL CONSIDER FACTORS SUCH AS THE SAFETY AND SOUNDNESS
OF THE ASSOCIATION, PREVAILING NATIONAL DIVIDEND AND INTEREST
RATES, AND COMPARABLE DIVIDEND AND INTEREST RATES PAID BY OTHER
FINANCIAL INSTITUTIONS IN THE STATE.

9-405. Same — Fixed term accounts.

(a)  In general.

Dividends or interest on a savings certificate account or
other type of fixed term account shall be:

(1)  Subject to the approval of the [Board of
Commissioners] DIVISION DIRECTOR; and

(2)  In accordance with the rules and regulations of
the [Board of Commissioners] DIVISION DIRECTOR.

(b)  Approval by [Board of Commissioners] DIVISION DIRECTOR.

Within 45 days of the request, the [Board of Commissioners]
DIVISION DIRECTOR shall approve an association's request to pay a
dividend or interest under this section if: