reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part I - In General › Section 9-211 - Charter Amendment

(a)    The charter of a savings and loan association may be amended as provided in Title 2, Subtitle 6 of the Corporations and Associations Article and this section.
(b)    Articles of amendment shall be filed and approved as required by this subtitle for articles of incorporation, except that:
(1)    A notice of the filing need not be published; and
(2)    A filing fee is not required.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part I - In General › Section 9-212 - Revival of Charter

(a)    A savings and loan association that forfeits its charter may revive the charter in accordance with Title 3, Subtitle 5 of the Corporations and Associations Article only if:
(1)    The Division Director approves the proposed articles of revival; and
(2)    The charter was forfeited for:
(i)    Failure to file an annual report with the State Department of Assessments and Taxation; or
(ii)    Nonpayment of taxes.
(b)    Not later than 30 days after a savings and loan association files articles of revival with the Division Director for examination, the Director shall pass an order approving or refusing the articles of revival.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-216.1 - Initial Accounts and Surety Bond

(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 subparagraph (i) of this paragraph may not be used for dividends to holders of capital stock or any other distribution to holders of capital stock except on liquidation.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-217 - Form of Surety Bond

The chairman of the incorporators shall deliver to the Division Director a bond issued by a surety company that is qualified to do business in this State. The bond shall:
(1)    Be in the aggregate amount of the following funds, as may be applicable under § 9-216.1 of this subtitle:
(i)    Initial subscription for savings accounts;
(ii)    Expense fund; and
(iii)    Initial subscription for capital stock account;
(2)    Name the Division Director as obligee;
(3)    Be in the form required by the Division Director; and
(4)    Guarantee the safekeeping of the amounts collected in the initial accounts:
(i)    For delivery to the savings and loan association if a certificate of incorporation is issued; or
(ii)    If the attempt to incorporate is unsuccessful, the return to the incorporators or subscribers of the respective amounts each paid to the initial subscription for savings accounts, the initial subscription for capital stock account and, less expenses, the expense fund.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-218 - Initial Subscription for Savings Accounts

The incorporators of a savings and loan association shall deliver to their chairman, as savings accounts in the association, an aggregate amount in subscriptions of at least $1,000,000 or any greater amount that the Division Director determines is necessary to conduct a safe and sound operation at the proposed location of the principal office of the association in this State. The aggregate amount constitutes the initial subscription for savings accounts.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-220 - Expense Fund

(a)    The incorporators of a savings and loan association shall deliver to the credit of the chairman of the incorporators, as an expense fund, cash in an amount equal to at least 25 percent of the minimum initial subscriptions for savings accounts under § 9-218 of this subtitle.
(b)    The expense fund shall be used to pay:
(1)    Organizational expenses; and
(2)    Operating expenses until earnings are sufficient to pay the operating expenses and any dividends or interest on savings accounts.
(c)    Except as to withdrawal rights, priority of claims on liquidation, and the provisions of this section, an incorporator’s contribution to the expense fund shall be treated as a savings account in the savings and loan association.
(d)    Contributions of the incorporators to the expense fund may be repaid pro rata to them from the net earnings of the savings and loan association after providing for the required allocation to the general reserve fund and the payment of dividends or interest on the savings accounts of at least 2 percent a year.
(e)    If the savings and loan association liquidates before repayment of the contributions, contributions shall be repaid pro rata to the incorporators from the unexpended expense fund after the payment of all:
(1)    Liquidation expenses;
(2)    Creditors; and
(3)    The withdrawal value of savings accounts.
(f)    Subsections (b), (c), and (d) of this section do not apply to any portion of an expense fund that is provided from the paid-in surplus of a capital stock association.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-221 - Initial Subscriptions for Capital Stock Account

The incorporators of a capital stock association shall have subscriptions for capital stock in an aggregate of not less than $1,000,000, or any greater amount that the Division Director requires in order to conduct a safe and sound operation.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 2 - Incorporation › Part II - Initial Capitalization › Section 9-223 - Refund on Failure to Incorporate

If the attempt to incorporate a savings and loan association is unsuccessful:
(1)    The chairman of the incorporators shall refund amounts paid to the initial accounts under this subtitle, except that the expense fund and paid-in surplus accounts are first subject to all reasonable expenses; and
(2)    The Division Director shall release the surety bond of the chairman of the incorporators when the Director has satisfactory assurance that:
(i)    All expenses have been paid; and
(ii)    All amounts under item (1) of this section have been refunded.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-301 - Member

(a)    A member of a savings and loan association means a holder, as shown on the association’s records, of:
(1)    One or more savings accounts, as to a mutual association; and
(2)    One or more shares of capital stock, as to a capital stock association.
(b)    (1)    Multiple holders of a single account or share of capital stock shall be considered a single member.
(2)    Notice to one holder of a multiple name account or share of capital stock is sufficient notice to all holders.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-302 - Directors

(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 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.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-303 - Voting Rights

Except as otherwise provided by the charter or bylaws, each member of:
(1)    A mutual association has one vote; and
(2)    A capital stock association has one vote for each share of capital stock that the member owns of record.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-304 - Notice of Meeting

(a)    A savings and loan association shall notify each member of the time and place of any meeting of members at least 20 days before the meeting.
(b)    The notice shall be given by mail or by publication in a newspaper of general circulation in the political subdivision where the principal business office of the association is located.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-305 - Quorum; Majority Rule

At any meeting of the members of a savings and loan association:
(1)    Except as provided in the charter or bylaws, any number of members present in person or by proxy is a quorum; and
(2)    Unless otherwise specifically provided by law, the charter, or the bylaws, a majority of all votes cast at which a quorum is present determines any question.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-306 - Statement of Financial Condition

(a)    A statement of the financial condition of a savings and loan association shall be:
(1)    Prepared quarterly;
(2)    Submitted at a meeting of the board of directors of the association that is held within 30 days after the end of the quarter; and
(3)    Submitted to the Division Director within 30 days after the end of the quarter.
(b)    A savings and loan association shall:
(1)    Send or provide the quarterly statement of financial condition to any person on request; and
(2)    Within 20 days after the board of directors meeting:
(i)    Have the quarterly statement of financial condition available at each of its offices in this State; and
(ii)    Send a quarterly statement of the salaries, fees, dividends, compensation under § 9-307(i) of this subtitle, expense accounts, and any loans permitted under § 9-307(d) of this subtitle paid or made to each of the officers, directors, and controlling persons of the association and a current list of the names of the officers, directors, and controlling persons of the association, certified by an officer of the association, to the Division Director, who shall make them available to any member or depositor on request.
(c)    (1)    At least once each year, a savings and loan association shall:
(i)    Publish a summary of the statement of financial condition in a newspaper published in the county where the association has its principal office; and
(ii)    Submit proof of publication of the summary to the Division Director.
(2)    Each summary of a report shall be in a form that the Division Director approves.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-308 - Fidelity Bonds

(a)    A savings and loan association shall provide a fidelity bond, in the amount that the Division Director requires, to cover each director, officer, employee, or agent of the association who has control over or access to cash or securities of the association.
(b)    If a person fails to qualify for the bond required by subsection (a) of this section, the association shall remove the person from the position held by the person with the association.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-309 - Offices

(a)    A savings and loan association may not establish or relocate any branch office or relocate a principal office unless the Division Director approves its application to do so.
(b)    An application for the establishment or relocation of a branch office or relocation of a principal office shall include:
(1)    An application fee of $500 unless the application is for relocation within a one-half mile radius of the existing site; and
(2)    A statement of:
(i)    The need for the establishment or relocation;
(ii)    The address of the proposed location;
(iii)    The services to be provided;
(iv)    The estimated annual expense; and
(v)    The source of payment for the annual expense.
(c)    (1)    The Division Director shall publish notice of the filing of an application under this section.
(2)    The notice shall state:
(i)    The scheduled date, place, and time of a public hearing at least 30 days and not more than 90 days after the filing;
(ii)    That written protests to the application may be made by any savings and loan association located in the area where a savings and loan office is proposed, and that protests shall be received by the Division Director no later than 10 days before the scheduled hearing; and
(iii)    That the hearing may be canceled if no written protest is received within the time provided in the notice.
(3)    The notice shall be published:
(i)    At least once each week for 2 successive weeks at the expense of the applicant in a newspaper of general circulation in the political subdivision where the proposed office is to be located;
(ii)    In the Maryland Register, as provided in the State Documents Law; and
(iii)    As the Division Director considers otherwise desirable.
(d)    As provided in this section:
(1)    Any savings and loan association located in the area where a proposed branch office of a savings and loan association is to be located or a principal office is proposed to be relocated may protest the requested approval of the Division Director; and
(2)    The Division Director shall give any savings and loan association that protests under paragraph (1) of this subsection an opportunity to be heard.
(e)    Not later than 30 days after the conclusion of the hearing or, if a hearing is not held, after the scheduled hearing date, the Division Director shall approve an application under this section if the Director finds that:
(1)    The public interest will be promoted; and
(2)    The office will be operated efficiently and in accordance with this title.
(f)    The Division Director may not approve a new office or location for any savings and loan association that is not in compliance with Title 8 of this article and this title or any other law or regulation of this State relating to savings and loan associations.
(g)    Any applicant may appeal any action or nonaction of the Division Director to the Circuit Court for Baltimore City.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-310 - Electronic Terminals

(a)    (1)    In this section, “electronic terminal” means an automated electronic information processing device that:
(i)    Stores information about a customer’s account with a savings and loan association and transmits that information to an office of the association; and
(ii)    Is activated by a machine-readable instrument issued to a customer.
(2)    An electronic terminal is not a branch office of a savings and loan association.
(b)    If the Division Director approves the application of a savings and loan association under this section, an association may establish and maintain an electronic terminal at a location that may be other than its principal or any branch office.
(c)    (1)    The savings and loan association shall:
(i)    File with the Division Director an application for general authority to establish one or more electronic terminals; and
(ii)    Pay to the Division of Savings and Loan Associations a $100 filing fee.
(2)    The application shall include as to proposed electronic terminals:
(i)    The location of each;
(ii)    The physical size and other characteristics;
(iii)    The capital investment;
(iv)    The security devices to be installed;
(v)    The systems and safeguards to be used to insure confidentiality and privacy of the account information of customers; and
(vi)    Evidence of sufficient fidelity, forgery, and other appropriate insurance to protect the interests of the association.
(3)    The Division Director shall publish a notice of the filing in the Maryland Register as provided in the State Documents Law.
(d)    Within 60 days after the application is filed, the Division Director shall approve an application only if the Division Director finds that the proposed terminal will:
(1)    Promote the public interest; and
(2)    Be operated efficiently and in accordance with this title.
(e)    A savings and loan association may use an electronic terminal to enable a customer of the association to:
(1)    Deposit money into an account of the customer of the association;
(2)    Transfer money from any account of the customer to any other account;
(3)    Withdraw money from an account or under an authorized line of credit of a customer;
(4)    Make payments on loans; and
(5)    Execute any other transaction that the Division Director approves.
(f)    A savings and loan association may verify by direct wire transmission or otherwise any transaction that is made by means of an electronic terminal.
(g)    A savings and loan association may participate with any other financial institution doing business in this State in establishing and maintaining an electronic terminal.
(h)    Any applicant aggrieved by any action or nonaction of the Division Director under this section may appeal to the circuit court for the county where the association has its principal business office in this State.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-311 - Officers

(a)    (1)    A savings and loan association shall have a president, a secretary, and a treasurer and other officers as it may authorize.
(2)    Except for the president, who may not hold any other office than that of chairman of the board, the bylaws of an association may provide that the same individual may hold 2 offices.
(3)    The president shall be a member of the board of directors.
(b)    (1)    Except as otherwise provided in the bylaws, the board of directors shall elect the officers, and fill all vacancies.
(2)    By a vote of the majority of the board at any time, the board may remove any officer elected or appointed.
(c)    The officers shall have the authority and perform the duties as are provided in the bylaws, or, in the absence of a provision in the bylaws, as are provided by the board.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part I - Organization › Section 9-312 - Reasonableness of Compensation and Fees

(a)    (1)    Except as otherwise provided in the bylaws, the board of directors of an association or subsidiary has the responsibility for determining the compensation of officers of the association or subsidiary.
(2)    Compensation determined under this section must be reasonable and commensurate with the duties and responsibilities of the officers.
(b)    In making the determination concerning officers, the board of directors shall consider the following factors:
(1)    The qualifications and experience of the person concerned;
(2)    The compensation paid to other persons employed by the association or subsidiary;
(3)    The compensation paid to persons having similar duties and responsibilities in other associations or subsidiaries;
(4)    The size of the association or subsidiary, and the complexity of its operations;
(5)    The financial condition, including income, of the association or subsidiary and the individual’s contribution to the financial condition;
(6)    Any amounts received, either directly or indirectly, by an officer whose principal occupation is with the association or subsidiary for other services performed for the association or subsidiary; and
(7)    The value of personal fringe benefits provided to the officer.
(c)    With respect to fees of outside accountants, appraisers, attorneys, or other professionals, the board of directors is responsible for a determination of whether those fees are reasonable and commensurate with the services being performed. This duty may be discharged by the establishment of standards for or ranges of reasonable fees with provision for periodic review by the board and the ability of the board to alter excessive fees.
(d)    (1)    In establishing fees to be paid to members of the board, the board of directors shall establish policies that protect the assets of the association.
(2)    The board of directors shall use the same factors in setting its fees as it does in setting the officer’s compensation.
(e)    The minutes of the board of directors shall include the record of deliberations concerning compensation for officers and fees for accountants, attorneys, appraisers, other professionals, and directors.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part II - Capital Structure of Associations -- Nondeposit Association › Section 9-313 - Savings Share Accounts

(a)    If its charter or bylaws provide, a savings and loan association that is not a deposit association may issue savings share accounts.
(b)    Notwithstanding any provision in its charter or bylaws before July 1, 1980 on the number of savings share accounts, a savings and loan association that is not a deposit association may accept subscriptions and payment for an unlimited number of savings share accounts without other corporate action.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part III - Capital Structure of Associations -- Deposit Association › Section 9-314 - Deposit Association

(a)    Only a deposit association may issue savings deposit accounts.
(b)    A savings and loan association may become a deposit association if:
(1)    Its charter or bylaws provide; and
(2)    The Division Director approves.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part III - Capital Structure of Associations -- Deposit Association › Section 9-315 - Rights of Owner of Deposit Account

(a)    The holder of a savings deposit account in a savings and loan association has the same claim priority in any distribution of assets on liquidation as a general creditor of the deposit association to the extent of the deposit account’s withdrawal value.
(b)    In addition to subsection (a) of this section, the holder of a savings deposit account has the same rights as the owner of a savings share account, including any membership or voting rights and the right to share in any distribution of remaining assets on liquidation.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part III - Capital Structure of Associations -- Deposit Association › Section 9-316 - Nature of Deposit Associations

If a savings and loan association becomes a deposit association:
(1)    It may accept only savings deposit accounts;
(2)    Existing savings share accounts in the association become savings deposit accounts;
(3)    The conversion, for the purpose of computing interest on its savings accounts, shall be considered to have taken place on the immediately preceding regular distribution date if the effective date of the conversion to a deposit association is made on a date other than the date on which an association regularly distributes dividends; and
(4)    The holder of any outstanding right to receive from the association a savings share account shall receive instead a savings deposit account.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part IV - Capital Structure of Associations -- Capital Stock Association › Section 9-320 - General Provisions

A capital stock association:
(1)    Shall obtain the prior written approval of the Division Director for each prospectus, offering circular, or advertisement offering capital stock for sale or subscription;
(2)    Shall include in each prospectus offering capital stock a statement that shares of capital stock are not insured by the State of Maryland Deposit Insurance Fund Corporation or the Federal Savings and Loan Insurance Corporation;
(3)    Except for stock issued under a plan of consolidation, merger, or reorganization approved under § 9-627 of this title, shall require that the consideration for its capital stock be paid in cash and in an amount not less than the par value of the stock;
(4)    May issue stock options under a stock option plan approved by the Division Director;
(5)    May not grant any loan which is secured in whole or in part by shares of its capital stock; and
(6)    Unless the Division Director has given prior written approval, may not repurchase shares of capital stock for its own account.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part IV - Capital Structure of Associations -- Capital Stock Association › Section 9-321 - Future Issuance of Capital Stock

(a)    If the Division Director approves a plan of issuance under subsection (b) of this section, a capital stock association may issue capital stock that is additional to that of its initial offering.
(b)    The Division Director shall approve a plan submitted under subsection (a) of this section if the plan:
(1)    Is fair; and
(2)    Conforms to this part of this subtitle.
(c)    A dividend in the form of a savings and loan association’s capital stock does not require approval of the Division Director.
(d)    A split of the number of issued shares of capital stock of a savings and loan association into a greater or lesser number of shares without increasing the stated capital of the association requires the approval of the Division Director.
(e)    Any applicant that is aggrieved by the action or nonaction of the Director may appeal to the Circuit Court for Baltimore City.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part IV - Capital Structure of Associations -- Capital Stock Association › Section 9-322 - Nature of Capital Stock

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 or 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;
(5)    Be designated “capital stock” notwithstanding any charter or bylaw provision; and
(6)    On each certificate that evidences capital stock, state that the shares are “capital stock” and are not insured by the State of Maryland Deposit Insurance Fund Corporation or the Federal Savings and Loan Insurance Corporation.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part IV - Capital Structure of Associations -- Capital Stock Association › Section 9-323 - List of Stockholders

(a)    Every stock association shall at all times keep an up-to-date list of the names of all its stockholders and those of its holding companies.
(b)    Each year, or whenever requested by the Division Director, the association shall file with the Division Director a correct list of all its stockholders and those of its holding companies, the resident address of each, and the number of shares of each class of stock held by each stockholder.
(c)    Except as provided in § 9-306(b)(2)(ii) of this subtitle, the Division Director shall keep confidential the list of stockholders.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part IV - Capital Structure of Associations -- Capital Stock Association › Section 9-324 - Net Worth Requirement

(a)    (1)    For the purposes of this section, “net worth” includes:
(i)    Capital stock;
(ii)    Paid-in capital or paid-in surplus;
(iii)    Retained income, retained earnings, earned surplus, and undivided profits;
(iv)    Subordinated debt as defined by the Division Director;
(v)    Preferred stock as defined by the Division Director; and
(vi)    Other items or amounts as defined and deemed appropriate by the Director to achieve regulatory objectives.
(2)    In this section, qualifying amounts shall be determined in accordance with generally accepted accounting principles or accounting practices determined by the Division Director to be appropriate to achieve regulatory objectives and to assure that the interests of depositors, members, stockholders, and the public are protected.
(b)    (1)    The minimum net worth requirement shall be:
(i)    An amount equal to at least 5 percent of liabilities as defined under generally accepted accounting principles, or accounting practices determined by the Division Director to be appropriate to achieve regulatory objectives, excluding that portion of subordinated debt included in net worth under subsection (a) of this section, plus
(ii)    Any additional amounts deemed necessary by the Division Director to assure that the interests of depositors, members, stockholders, and the public are protected.
(2)    Beginning on June 1, 1986, for those associations that do not meet the requirements of paragraph (1) of this subsection and, on May 31, 1986, were otherwise in compliance with the applicable general reserve requirement of 3 percent of savings and loan liabilities, as defined under laws and regulations in effect on May 31, 1986, regulatory net worth must be increased so that the requirements of paragraph (1) of this subsection are satisfied by July 1, 1989.
(c)    Dividends on capital stock may not be declared or paid if the association, after the payment of the dividends, would not be in compliance with subsection (b)(1) of this section.
(d)    In the event that an association is not in compliance with the requirements of this section, the Division Director may take any action necessary, as authorized under this title and Title 8 of this article to assure that the interests of depositors, members, stockholders, and the public are protected.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part V - Capital Structure of Associations -- Operations › Section 9-328 - Allocation of Profits

(a)    Subject to regulation of the Division Director, the board of directors of each savings and loan association shall allocate the profits of the association, at least annually, at the times the bylaws provide.
(b)    The board of directors of each savings and loan association shall:
(1)    In accordance with generally accepted accounting principles, determine gross income for the association; and
(2)    Exclude from gross income:
(i)    Income received or accrued during the period of default for any asset upon which a default exists; and
(ii)    Discounts that are amortized on securities upon which a default exists.
(c)    To determine the amount of net profits, the board of directors shall deduct items from gross income in accordance with generally accepted accounting principles.
(d)    By regulation the Division Director may permit or deny other items to be included in, or deducted from, gross income.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 3 - Organization and Capitalization › Part V - Capital Structure of Associations -- Operations › Section 9-329 - Priority of Claims

(a)    In any distribution of assets on liquidation of a savings and loan association, the priority of claims is as follows:
(1)    In a mutual association:
(i)    General creditors and holders of savings deposit accounts;
(ii)    Holders of savings share accounts; and
(iii)    Contributors to the initial general reserve fund before June 1, 1986 and to the expense fund under Subtitle 2 of this title; and
(2)    In a capital stock association:
(i)    General creditors (other than those who are capital stockholders) and holders of savings deposit accounts;
(ii)    Holders of savings share accounts;
(iii)    Contributors to the initial general reserve fund before June 1, 1986 and to the expense fund under Subtitle 2 of this title unless the funds were provided by paid-in surplus; and
(iv)    Capital stockholders.
(b)    Notwithstanding any other provision of law, in the case of the liquidation of a savings and loan association for which a receiver has been appointed under § 9-708 of this title:
(1)    The determination of whether the association’s savings accounts constitute savings deposit accounts or savings share accounts for purposes of subsection (a) of this section shall be made as of the date that the receiver is appointed by the court administering the receivership; and
(2)    If, as of that date, the savings and loan association in receivership constitutes a deposit association under § 9-314 of this subtitle, then all of its savings accounts shall constitute savings deposit accounts for purposes of subsection (a) of this section.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-402 - Savings Certificate Accounts or Other Fixed Term Savings Accounts

In accordance with rules and regulations of the Division Director, a savings and loan association may issue a savings certificate account or any other fixed term savings account.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-404 - Dividends or Interest -- Savings Accounts

(a)    Subject to this title and its bylaws, a savings and loan association may:
(1)    Pay a dividend on savings share accounts or interest on savings deposit accounts;
(2)    Agree in advance to pay an additional or different rate of dividend or interest on all savings accounts in the same classification subject to the requirement that each savings account in the same classification receive the same ratable portion of dividends or interest; and
(3)    Provide for penalties in a savings account contract, subject to approval of the Division Director.
(b)    The board of directors of a savings and loan association, by resolution, shall determine as to dividends or interest on savings accounts:
(1)    The rate;
(2)    The method of calculation; and
(3)    The payment date.
(c)    Dividends or interest on savings accounts may be paid only from current earnings, earned surplus, the expense fund, or as otherwise provided in this title.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-405 - Dividends or Interest -- Fixed Term Accounts

(a)    Dividends or interest on a savings certificate account or other type of fixed term account shall be:
(1)    Subject to the approval of the Division Director; and
(2)    In accordance with the rules and regulations of the Division Director.
(b)    Within 45 days of the request, the Division Director shall approve an association’s request to pay a dividend or interest under this section if:
(1)    Earnings of the association are sufficient to pay the proposed dividend for a period of at least 1 year; and
(2)    The public interest is protected.
(c)    An applicant aggrieved by the action or nonaction of the Division Director under this section may appeal to the appropriate circuit court.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-406 - Dividends or Interest -- Special Purpose Accounts

(a)    Except as required by subsection (b) of this section, a savings and loan association is not required to pay any dividend or interest on special purpose accounts such as “Christmas” or “vacation” accounts.
(b)    A savings and loan association shall pay at least 5 percent annual interest or dividend on savings accounts that are for:
(1)    A period of 1 year or less; and
(2)    A special purpose, such as “Christmas” or “vacation” accounts.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-407 - Small Accounts

(a)    As to any savings account that has a withdrawal value of less than $25, a savings and loan association:
(1)    Need not pay a dividend or interest on the account; and
(2)    May not charge a penalty or service charge.
(b)    This section does not apply to a negotiable or transferable order of withdrawal account.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-408 - Withdrawals

(a)    At any time, a holder of a savings account in a savings and loan association may request to withdraw all or any part of the money in the account of the holder and, for certain classes of accounts, the request may be made by a negotiable or transferable order.
(b)    (1)    A savings and loan association may permit withdrawals from a savings account to be made by negotiable or transferable order.
(2)    As to any savings account from which withdrawal may be made by a negotiable or transferable order of withdrawal, a savings and loan association:
(i)    Need not pay any dividend or interest on the account; and
(ii)    May impose a service charge on any account in accordance with the regulations of the Division Director.
(c)    (1)    As long as a written withdrawal request remains on file, a member who is a holder of a savings account in a savings and loan association who has requested a withdrawal from the account remains a member of the association until the withdrawal request is paid.
(2)    A holder of a savings share account in a savings and loan association who has requested a withdrawal from the account is not a creditor of the association, either before or after the request to withdraw money, unless an association defaults in any payment due under this section.
(d)    This section does not prevent a savings and loan association from restricting by contract a withdrawal from an account of $100,000 or over, or any account that is pledged to the association.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part I - General Provisions -- Dividends or Interest; Withdrawals › Section 9-412.1 - Month and Year Account Opened to Appear on Checks or Drafts; Exceptions

(a)    Any checks or drafts provided directly or indirectly by a savings and loan association for use in connection with a personal checking or draft account shall have the numerical month and year in which the account was opened printed on the face of the checks or drafts, except as provided in subsection (b) of this section.
(b)    The provisions of subsection (a) of this section shall not apply under certain conditions:
(1)    If an individual personal checking account is closed at a particular savings and loan and a joint personal account is opened at the same savings and loan that includes one of the customers who previously had the individual personal account, then the numerical month and year printed on the face of the checks or drafts shall be the numerical month and year in which the individual personal account was established.
(2)    If a joint personal account is closed at a particular savings and loan and an individual personal account is opened at the same savings and loan by one of the customers who previously was included under the joint account, then the numerical month and year printed on the face of the checks or drafts shall be the numerical month and year in which the joint account was established.
(3)    If a customer with an individual personal account or with a joint personal account opens an additional account at the same savings and loan, then the numerical month and year printed on the face of the checks or drafts shall be the numerical month and year in which the initial account was established.
(4)    In the case of a personal checking or draft account that is closed and a new personal checking or draft account opened simultaneously on the advice of the savings and loan association, the checks or drafts for the new account shall have the numerical month and year in which the closed account was originally opened printed on the face of the checks or drafts.
(5)    If the closed account was opened prior to July 1, 1987, a date is not required to be printed on the checks or drafts.
(c)    A check, draft, or order provided on the opening of a personal checking or draft account for use by the customer until printed checks or drafts have been prepared is not required to have the numerical month and year in which the account was opened printed on the face of the check, draft, or order.
(d)    (1)    The savings and loan association and the check printer may not be held liable for unintentional errors in the month and year printed on the face of the check.
(2)    The customer may not be charged for the reprinting of the checks when the checks are reprinted due to error in the month and year printed on the face of the check.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-416 - Adverse Claim to Money

(a)    Except as provided in subsection (b) of this section, a savings and loan association is not required to recognize or take any action on any claim to a deposit or to money or property held by the association or contained in a safe deposit box if that claim is adverse to the interests of any person who, on its records, appears to be entitled to the deposit, money, or property.
(b)    If, in an action to which an adverse claimant is a party, a court order or decree involving a claim to the deposit, money, or property is served on a savings and loan association, the association may, or if required by the court, shall impound the deposit, money, or property, subject to further order of the court, and without any liability for these actions.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-421 - Alternative Mortgage Instruments

(a)    In accordance with the regulations of the Division Director, a savings and loan association may permit borrowers to repay indebtedness on a loan by any method of repayment or plan, including a plan or repayment of indebtedness on a loan that is other than a direct monthly reduction of principal plan that has a fixed interest rate, level payments, and full amortization.
(b)    If a savings and loan association offers any alternative mortgage instrument on an owner-occupied residential loan in addition to a standard direct monthly reduction of principal plan, as required by the Division Director, the association shall give each prospective borrower information on the alternative plan and the standard plan.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-422 - Title to Investments; Exception

A savings and loan association shall take title to all its investments in its own name, except as may be permitted by regulation or order of the Division Director to assign or grant a security interest in collateral given by a savings and loan association to any State or federal government agency or instrumentality, including the State of Maryland Deposit Insurance Fund Corporation, a federal reserve bank, or a federal home loan bank, to secure loans to the savings and loan association.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-423 - Right to Hold Investments

If a savings and loan association holds an investment that was permitted under this subtitle at the time the investment was made, and the Division Director later withdraws the authorization, the association may continue to hold the investment.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-424 - Expenses Charged Borrowers

(a)    A savings and loan association may require a borrower to pay all charges in connection with a loan to the borrower.
(b)    At each settlement, a savings and loan association shall give the borrower a memorandum of settlement that details each charge made in connection with the settlement.
(c)    This section does not modify the usury laws of this State.
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-425 - Depository

(a)    A savings and loan association may:
(1)    Act as a depository of funds of:
(i)    The federal government and its agencies; and
(ii)    This State and any of its political subdivisions;
(2)    Pledge collateral to secure deposits; and
(3)    Comply with the terms required by the depositor.
(b)    Depositors under this section are general creditors under § 9-329 of this title (“Priority of claims”).
2023 Maryland Statutes › Financial Institutions › Title 9 - Savings and Loan Associations › Subtitle 4 - General Powers and Provisions › Part II - General Provisions -- Operations › Section 9-426 - Trustee or Custodian Under Federal Retirement Acts

If the Division Director approves its application, a savings and loan association may act as a trustee or custodian under any pension or retirement act of the federal government or of any state.