EXECUTIVE ORDERS

with Financial Institutions Article, § 9-408,
shall notify the Division in writing of its
intention to offer NOW accounts.

Required Documentation. Written notice to the
Division shall be accompanied by the following
documentation:

(1)  A copy of the corporate resolution
authorizing NOW accounts;

(2)  An opinion of counsel that NOW accounts are
permitted by the association's by-laws;

(3)  Rules of the association governing NOW
accounts which include specific information on
required minimum balances, service charges,
penalties, and overdraft privileges;

(4)  A Truth-in-Savings Statement which conforms
with Financial Institutions Article, § 9-403,
if dividends or interest are paid on the
account;

(5)  The association's internal feasibility
study which outlines the associations's
pricing and marketing strategy for NOW
accounts and the estimated cost of offering
this service.

Modifications to Documentation. The association
shall notify the Division in writing of any
material modification to the documentation
submitted in accordance with § B.

Permissible Classes of Accounts. An association
which permits its customers to make withdrawals
from savings accounts by negotiable or
transferable orders of withdrawal may pay
dividends or interest only with respect to
deposits or accounts which consist solely of funds
in which the entire beneficial interest is held by
one or more individuals or by an organization
which is operated primarily for religious,
philanthropic, charitable, educational, or other
similar purposes and which is not operated for
profit.

Officers, directors, controlling persons as
defined in Financial Institutions Article, § 9-323
and members of their immediate families or
corporations, businesses or other entities in
which an interest of 10% or more is owned by an
officer, director, controlling person or member of
his or her immediate family shall be permitted to