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Maryland Code, Financial Institutions § 4-208

Current as of January 01, 2025 | Updated by Findlaw Staff

(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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Cite this article: FindLaw.com - Maryland Code, Financial Institutions § 4-208 - last updated January 01, 2025 | https://codes.findlaw.com/md/financial-institutions/md-code-fin-inst-sect-4-208/

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