1124

LAWS OF MARYLAND

Ch. 282

(5)  LOAN DOCUMENTATION FOR DEVELOPMENT LOANS SHALL
CONTAIN:

(I)  A PRELIMINARY DEVELOPMENT PLAN THAT IS
SATISFACTORY TO THE ASSOCIATION; AND

(II)  A PROJECTION THAT NOT LESS THAN THE
INVESTMENT IN THE LOAN WILL BE RECOVERED.

(6)  THE RECOGNITION OF INCOME AND THE AMORTIZATION
METHOD USED BY THE ASSOCIATION ORIGINATING THE LOANS SHALL BE IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

(7)  (I) THE TOTAL AMOUNT OF LOANS FOR ACQUISITION,
DEVELOPMENT OR CONSTRUCTION CANNOT EXCEED 10 PERCENT OF THE
ASSETS OF THE ASSOCIATION.

(II) LOANS TO ONE BORROWER MADE UNDER THIS
SUBSECTION FOR ANY ONE DEVELOPMENT PROJECT MAY NOT EXCEED 50
PERCENT OF AN ASSOCIATION'S NET WORTH OR 2 PERCENT OF ITS ASSETS,
WHICHEVER IS LESS.

(F) NOTHING IN THIS SECTION MAY BE CONSTRUED TO AFFECT THE
VALIDITY OF ANY LOANS MADE BEFORE JUNE 1, 1986 BY ANY SAVINGS AND
LOAN ASSOCIATION IN ACCORDANCE WITH THE PROVISIONS OF LAW
RELATING TO LOANS BY SAVINGS AND LOAN ASSOCIATIONS IN EFFECT
BEFORE JUNE 1, 1986.

9-421. Alternative mortgage instruments.

(a)  Alternative mortgage instruments authorized.

In accordance with the regulations of the [Board of
Commissioners] DIVISION DIRECTOR, a savings and loan association
may permit borrowers to repay indebtedness on a loan by any
method of repayment or plan, including a plan or repayment of
indebtedness on a loan that is other than a direct monthly
reduction of principal plan that has a fixed interest rate, level
payments, and full amortization.

(b)  Disclosure to borrower.

If a savings and loan association offers any alternative
mortgage instrument on an owner-occupied residential loan in
addition to a standard direct monthly reduction of principal
plan, as required by the [Board of Commissioners] DIVISION
DIRECTOR, the association shall give each prospective borrower
information on the alternative plan and the standard plan.

9-422. Title to investments.

A savings and loan association shall take title to all its
investments in its own name.

9-423. Right to hold investments.