Ch. 9

LAWS OF MARYLAND

directors, as its charter or bylaws provide.

(c)  (1) Each director of a savings and loan association
shall be:

(i) A citizen of the United States; and

(ii) A member of the association or the holder
of a savings account in the association.

(2)  At least two-thirds of the directors shall be
residents of this State.

(3)  Each nonresident director shall be approved by
the Division Director as qualified to serve.

(d)  Subsection (c)(1)(ii) of this section does not apply to
any member of a board of directors who was serving on a board
before July 1, 1980.

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
approval of a nonresident director of a savings and
loan association by the Director of the Division of
Savings and Loan Associations, was shown in a function
paragraph to be unamended. 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.

9-322.

Capital stock shall:

(1)  Have a par value of $1 a share, or any greater
amount that the charter may provide;

(2)  Be nonassessable, notwithstanding any provision
in the charter, bylaws, or on the capital stock certificate;

(3)  Be nonredeemable until each claim against and
each liability of the capital stock association is satisfied
fully, and each savings account is paid to its holder at its
withdrawal value;

(4)  Be entitled to payment of dividends but only
after dividends or interest are paid on each savings account as
provided in Subtitle 4 of this title;

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