THEODORE R. McKELDIN, GOVERNOR                  1021

sub-title "Savings Institutions", and to enact in lieu thereof, a
new Section 40, to stand in the place and stead of the section so
repealed, providing that no savings institution or savings bank
hereafter incorporated shall have any capital stock but shall be
a mutual association, providing the terms, conditions and limita-
tions under which mutual savings institutions, whether hereafter
incorporated under said Article or heretofore incorporated under
general law or by special act of the General Assembly of Maryland,
may be authorized to establish, maintain and operate branches
within this State with the approval of the Bank Commissioner,
AND THE BANKING BOARD and providing for the continuance,
maintenance and operation of existing branches, AND PROVID-
ING FOR THE EFFECT OF THE ACT IN CALVERT COUNTY.

SECTION 1. Be it enacted by the General Assembly of Maryland,
That Section 40 of Article 11 of the Annotated Code of Maryland
(1951 Edition), title "Banks and Trust Companies", sub-title "Sav-
ings Institutions", be and the same is hereby repealed, and that a
new section, to be known as Section 40 of said Article, be and it is
hereby enacted in lieu thereof to stand in the place and stead of the
section so repealed, and to read as follows:

40. (a) No savings institution or savings bank hereafter incor-
porated shall have any capital stock, but shall be a mutual associa-
tion.

(b) Any savings institution hereafter incorporated or heretofore
incorporated under general law or by special act of the General
Assembly of Maryland shall have the right and authority to establish,
maintain and operate a branch or branches in the city or county in
which it is located or at any other point within the State, but only
after having first obtained the approval of the Bank Commissioner,
which approval may be given or withheld in his discretion, BY AND
WITH THE ADVICE AND COUNSEL OF THE BANKING BOARD
OF THIS STATE and shall not be given until he shall have ascer-
tained to his satisfaction:

(1)  That the public convenience and advantage will be promoted by
the opening of any such branch for which application shall have been
made;

(2)  That said savings institution has complied with all the other
terms and conditions prescribed by this Article applicable to said

institution;

(3)  That in case said savings institution shall, after the effective
date of this Section, undertake to establish a branch outside of the
city, town or village in which its main office is now located, it shall
have set aside as a guarantee fund an amount equal at least to the
minimum amount required by Section 42 of this Article, and shall
have added to said guarantee fund an amount equal to the minimum
requirement under this Article as to the capital and surplus of State
banks in the same locality where said branch so applied for is to be
established; provided, however, that in estimating such addition to
said guarantee fund of said savings institution applying for said
branch, credit shall be given for the amount that its existing guaran-
tee fund exceeds the amount thereof required by this Article;