MARVIN MANDEL, Governor

1751

§40(a).

The Bank Commissioner's Office advises that
there are no existing savings institutions
having capital stock. Therefore, the phrase
"hereinafter incorporated," which acted as a
"grandfather clause" exception, is deleted as
obsolete. See the revisor's note to §6—112 of
this subtitle.

Present §40(d), which contains special
provisions for Calvert County, is retained
there for eventual allocation to the Business
Regulation Article.

For an explanation of the deletion of "savings
bank," see the revisor's note to §6—101(h) of
this subtitle.

6-107. GUARANTY FUND.

(A)   INITIAL GUARANTY FUND.

A SAVINGS INSTITUTION SHALL HAVE AN INITIAL CASH
GUARANTY FUND IN AN AMOUNT NOT LESS THAN:

(1.) THE MINIMUM AMOUNT OF CAPITAL STOCK
REQUIRED FOR FORMATION OF A STATE BANK IN THE SAME
MUNICIPAL AREA; AND

(2) ANY GREATER AMOUNT WHICH THE COMMISSIONER
DETERMINES IS NECESSARY TO MAINTAIN THE SOLVENCY OF THE
SAVINGS INSTITUTION.

(B)   TRANSFERABLE DEFERRED PAYMENT CERTIFICATES.

(1)     THE MONEY PAID INTO THE SAVINGS
INSTITUTION AS INITIAL GUARANTY FUNDS SHALL BE EVIDENCED
BY TRANSFERABLE DEFERRED PAYMENT CERTIFICATES.

(2)    THE FOLLOWING SHALL REQUIRE THE APPROVAL
OF THE COMMISSIONER:

(I)   THE FORM OF THE CERTIFICATES;

(II)   THE RATE OF INTEREST WHICH THE HOLDER OF
A CERTIFICATE IS ENTITLED TO RECEIVE; AND

(III)  THE TERMS UNDER WHICH AND THE PRO RATA
INSTALLMENTS BY WHICH THE HOLDER OF A CERTIFICATE MAY BE
REPAID.

(C) MINIMUM GUARANTY FUND - SAVINGS INSTITUTIONS.