The midland journal. (Rising Sun, Md.) 1885-1947, 1937-10-08


AN ACT to add new section to Article
% of the Code of Public General Laws
of Maryland 1924 Edition., title Cor
porations", subtitle Building or
Homestead Associations, said new
section to be known as Section 164A
and to follow Immediately after Sec
tion 1874, providing for the repurchase
Of shares by Building or Homestead
Associations or withdrawal of funds
by the members thereof.
Section 1. Be it enacted by the Gen
eral Assembly Of Maryland, That new
section be and 1t is hereby added to
Article % Of the Code of Public Gen.
eral Laws of Maryland 1924 EDITION.,
ing or Homestead Associations, said
new section to be known as Section
184A and to follow Immediately after
Section 1914 of said Article and to read
as follows:
164A. Every Homestead or Building
Association incorporated under the laws
of this State, shall have the right at
any time, in the discretion of its Board
of Directors, to apply any of it's unex-
pended funds, after all applications for
Withdrawals as hereinafter provided for
shall have been paid, to the repurchase
of its outstanding shares, provided that
the repurchase of such shares shall be
apportioned among all of its sharehold-
ers pro rata. The shareholders of any
Building or Homestead Association in
\ corporated under the laws of this State
desiring to withdraw from said Assoc
citation, in full or in part, shall make
application to said Association, in writ
ing, requesting that said Association
repurchase the share or shares of said
shareholder in full or in part to the ex-
tent and in the amount set out in said
application, and the said Association
upon receiving said application to re-
purchase said share or shares, may in
its discretion repurchase the same in
full to the extent of the amount applied
for, but shall only be required to re-
purchase said share or shares as here
matter provided and that no share
holder shall have any right to withdraw
from said Association except according
to the following provisions. Upon re-
ceiving written application from
shareholder to repurchase share or
shares in full or in part, the Associa-
ton shall number and file the same in
the order received and said Association
shall pay to the first applicant in nu-
merical order 1919 of the amount Of shares
offered for repurchase within thirty days
of the date of the application, provided,
that IL, such share or shares are
to the Association the full amount of
such application to repurchase shall be
first applied in satisfaction of such OBJ
legation; applicant shall retain his nu-
merical order until sufficient funds have
been received by said Association to
mako payment Of said amount of 1919,
and upon such payment being made, the
said share or shares offered for repur-
chase shall be charged with the amount
of said payment and said application
shall then be remembered and placed
at the end of the list of applications to
repurchase and thereafter upon again
being reached shall be paid like
amount, but not exceeding the value of
the shares offered for repurchase and
until paid in full shall continue to be
SO paid, renumered and replaced at the
end of the list; 1t being expressly pro-
vided, however, that the Board of Direc-
tors pay to any shareholder, in any or
der regardless of whether such share
holder has filed a written application
for repurchase or not, having to his
credit a sum of less than $4,000, such
sum as they shall determine, provided
that said payment shall not be less than
$500 monthly until paid, and when
such payment is made the same shall
be considered to have been made on
account of the repurchase of shares.
The Association shall at no time apply
in payment of applications for repur-
chase less than one-half of its receipts
from all sources other than receipts
from interest and expense funds of bor-
rowers. Shareholders filing written ap-
plicatiOn for the repurchase of their
shares shall remain upon the. list of
applications to repurchase as above set
forth until such time as their applica-
lions have been paid or satisfied. Share
holders filing written application for the
repurchase of their shares shall remain
shareholders until paid and shall not
become creditors. Provided, however,
that no new deposits or free share ac-
counts of any Building or Homestead
Association received by said Associa--
ton after June /, 1887, shall be subject
to the provisions of this Section.
Sec. 2 And be it further enacted,
That should any section, clause, SEN
tence or part Of section of this Act
be held to be unconstitutional or in
valid for any reason, such holding shall
not be construed as effecting the valid
ity of any remaining section or part of
a section of this Act it being the leg
islative intent that the remainder of
this Act shall stand, Notwithstanding
the unconstitutionality or invalidity of
such section, clause, sentence or part
of a section.
Sec. 8. And be it further enacted,
That this Act shall not remain in force
after the first day of June, 1889.
Sec. 4. And be is further enacted,
That this Act shall take effect June
list, 1887.
Approved: May %, 1887.