Section 5-1107 - Indemnification of claims; release of State of Maryland Deposit Insurance Fund Corporation; repayment of indebtedness to former Maryland Savings-Share Insurance Corporation or State o - Maryland Statutes

§ 5-1107. Indemnification of claims; release of State of Maryland Deposit Insurance Fund Corporation; repayment of indebtedness to former Maryland Savings-Share Insurance Corporation or State of Maryland Deposit Insurance Fund Corporation.
 

Upon and after the acquisition of each savings and loan association or commercial bank successor to a savings and loan association to be acquired under this subtitle, the out-of-state bank holding company and the acquired institution shall, unless otherwise determined in writing by the Fund Director to be in the best financial interest of the Fund: 

(1) Defend, indemnify, and hold harmless the State of Maryland, its agencies, instrumentalities, officials, agents, and employees from all claims of: 

(i) Holders of savings accounts in that savings and loan association arising out of insurance of their accounts by the Maryland Savings-Share Insurance Corporation or the State of Maryland Deposit Insurance Fund Corporation; and 

(ii) Parties to loan agreements, loan commitments, lines of credit, or letters of credit of that savings and loan association arising solely out of the failure of the commercial bank to honor within a reasonable period of time after its acquisition by the out-of-state bank holding company the terms of a legally binding written commitment entered into by that savings and loan association; 

(2) Relinquish any right to and release the State of Maryland Deposit Insurance Fund Corporation from any obligation to return any part of the capital deposit required for membership in the Fund; and 

(3) Provide for repayment of any indebtedness incurred by an acquired savings and loan association to the former Maryland Savings-Share Insurance Corporation or the State of Maryland Deposit Insurance Fund Corporation. 
 

[1985, 2nd Sp. Sess., ch. 3; 1986, ch. 11, § 2.]