14. Segment Information - Enterprise Funds:

Activity segments included in enterprise funds are described in Note IB. Selected financial information with
respect to these segments is as follows (amounts expressed in thousands):

_____________________________________Segments_________________________________

15. State of Maryland Deposit Insurance Fund Corporation:

During 1985, several State-chartered savings and loan associations, whose deposits were insured by the
Maryland Savings-Share Insurance Corporation (MSSIC), experienced unusually heavy withdrawals of funds by
depositors which caused a substantial decline in their liquid assets. As a result, MSSIC was appointed by the
Circuit Court of Baltimore City to act as conservator for two of the associations. On May 17,1985, the Maryland
General Assembly enacted legislation creating the State of Maryland Deposit Insurance Fund Corporation
(MDIFC), an agency of the State of Maryland Department of Licensing and Regulation and the successor by
statutory merger to MSSIC. On May 18,1985, all savings and loan associations that were members of MSSIC
automatically became members of MDIFC. MDEFC insures members' savings deposits deposited prior to that
date up to $100,000 per account and amounts deposited after that date up to $100,000 per depositor.

Emergency legislation also gave authority to the Maryland Board of Public Works to issue, at its discretion,
general obligation bonds of the State not to exceed the aggregate principal amount of $100,000,000. Bond
proceeds may be provided to MDIFC or to the Savings and Loan Association Capital Stabilization Fund (the
"Fund"), a special non-lapsing fund established by the legislation. The Fund may be applied at the discretion
of the Governor to purchase net worth certificates of any Maryland chartered savings and loan association if,
in the opinion of the Secretary of Licensing and Regulation, by so doing the association will qualify for insurance
of its deposits and accounts by FSLIC. Net worth certificates are special capital instruments which MDIFC-
insured associations are authorized to issue for the purpose of increasing their capital. The Board of Public
Works may authorize the purchase of such certificates in exchange for money, bond anticipation notes, or other
obligations of the State in consideration for the net worth certificates. The net worth certificates give the State
the right to exercise significant operational control over the association and may be convertible into stock of a
capital stock association. As of October 31,1988, none of the authorized $100,000,000 general obligation bonds
had been issued, however, net worth certificates totaling $8,148,000 had been purchased from four associations
in exchange for a like principal amount of bond anticipation notes of the State. Each of the bond anticipation
notes mature three years after its date of issuance, subject to prior redemption at par at any time at the option
of the State, and bear interest, payable annually, at rates of 6.5% to 9.0%. The net worth certificates bear
interest at 1.5% above the bond anticipation notes. The State does not intend to redeem the net worth
certificates or issue general obligation bonds in connection with these transactions and, accordingly, the net
worth certificates and bond anticipation notes have not been recorded in the State's financial statements.
Interest received on net worth certificates and interest paid on bond anticipation notes during fiscal year 1988
are recorded in the general obligation debt service fund.

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