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§ 4-208. Initial guaranty fund requirements

MD Fin Inst Code § 4-208 (2019) (N/A)
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(a)    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)    (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.

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§ 4-207. Certification before beginning business
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§ 4-209. Fund payments before beginning business