HARRY HUGHES, Governor

4091

loans, "secured by the borrowers principal
residence" shall mean that the total amount
of the loan and all other prior liens
secured by the borrowers principal
residence shall not exceed 80% of the
appraised value of the principal residence,
as determined by a disinterested appraiser.

(5)  As provided by Financial Institutions
Article, § 9-307(c), Annotated Code of
Maryland, no officer, director, controlling
person or employee of an association may
have any interest, direct or indirect, in
the purchase of any savings account or
evidence thereof issued by this association
at less than its face value.

(6)  As specified in Article 48A, § 228,
Annotated Code of Maryland, an association
may not require, as a condition of granting
any loan or the extension of any other
service by the association, that the
borrower purchase insurance of any kind
through any given agent, broker, or
insurer. This prohibition, however, may
not apply to any insurance or guarantee
provided by a government agency or private
mortgage insurance company which is
essential to the consummation of a loan
transaction, provided that such company may
not be a parent, subsidiary or affiliate of
the association.

(7)  A director, officer, controlling person or
employee acting as proxy for a member of an
association may not surrender control or
pass his office to any other for any
consideration of a private benefit or
advantage, direct or indirect. The voting
rights of members and directors may not be
the subject of sale, exchange, or similar
transactions, either directly or
indirectly.

(8)  A director, officer, controlling person or
employee may not solicit, accept, or agree
to accept, directly or indirectly, from the
association or any other source any
gratuity, compensation, or other personal
benefit in connection with the procurement
of any loan made by or to the association
or any of its parents, subsidiaries or
affiliates.

(9)  An association may not make a loan to a