§ 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.

HISTORY: CA § 6-213 -- 6-215; 1980, ch. 856; 1986, ch. 5, § 1; ch. 282; 1987, ch. 11, § 1.