Section 4-208 - Initial guaranty fund requirements. - Maryland Statutes

§ 4-208. Initial guaranty fund requirements.
 

(a)  Initial guaranty fund - In general.- Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least: 

(1) The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and 

(2) Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent. 

(b)  Same - Branches.-  

(1) Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection. 

(2) For a branch that is to be located inside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than 5 percent of its total deposits. 

(3) For a branch that is to be located outside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than the sum of: 

(i) 5 percent of its total deposits; and 

(ii) The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch. 
 

[CA §§ 6-107, 6-108; 1980, ch. 33, § 2; 1982, ch. 882; 1996, ch. 326, § 2.]