WILLIAM DONALD SCHAEFER, Governor                        Ch. 9

Article - Financial Institutions

9-216.1.

(a) To organize as a savings and loan association, the
chairman of the incorporators shall:

(1)  Obtain a surety bond as provided in § 9-217 of
this subtitle; and

(2)  Establish:

(i) The initial subscription for savings

accounts; and

(ii) The expense fund.

(b) (1) In addition to subsection (a) of this section, the
incorporators of a capital stock association shall establish an
initial subscription account for capital stock.

(2) (i) A capital stock association may use its
paid-in surplus to provide amounts required for the expense fund.

(ii) Any paid-in surplus amounts that are
allocated to the expense fund under item (2)(i) of this
subsection may not be used for dividends to holders of capital
stock or any other distribution to holders of capital stock
except on liquidation.

DRAFTER'S NOTE: The inclusion of this provision is intended
to correct an error in a function paragraph noted by
the Attorney General in a May 5, 1986 letter to the
Director of the Department of Legislative Reference
regarding the adequacy of the title of Chapter 282
(House Bill 466) of the Acts of 1986. That letter
noted that an amended provision of law, relating to
initial general reserve fund and general reserve fund
requirements for organizing as a savings and loan
association, was not shown in a function paragraph to
be amended and renumbered. This Curative Bill
reprints the amended provision as it now exists, with
a related title reference, in order to validate the
changes made by Chapter 282.

9-302.

(a)  The business and affairs of a savings and loan
association shall be managed under the direction of a board of
directors.

(b)  A savings and loan association shall have at least 5

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