2034

LAWS OF MARYLAND

[Ch. 311

Commissioner.

Note that the prohibition on sale of
securities and negotiation of loans appears
less restrictive than the prohibition on
indebtedness which, in addition to banking
institutions and credit unions, refers to any
"other institution subject to the jurisdiction
of the Commissioner...."

39.

(e) Minimum unimpaired guarantee fund.—At the
close of each fiscal closing year, each newly chartered
mutual savings institution shall transfer and credit to
its [guarantee] GUARANTY fund an amount not less than
[ ten ] 10 percent [ (10%) ] of its net earnings before
interest. When [said] THE unimpaired [guarantee]
GUARANTY fund reaches an amount equal to at least [five]
5 percent [(5%) ] on the whole amount of its deposits,
[no] further additions [shall be] ARE NOT required to be
made to the [guarantee] GUARANTY fund except as provided
in §§40, 42, and 43 of this article. [Until the guarantee
fund reaches the required minimum herein set forth no
payments shall be permitted to be made on the deferred
payment certificates by way of principal but the
Commissioner may permit interest to be paid on said
certificates during this period at such annual rate as he
may approve. ]

REVISOR'S NOTE: This subsection is amended to delete
the last sentence, which is now included in
§6—106(c) of the Corporations and
Associations Article.

The only other changes are in style.

40.

(b) Establishment of branches. —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 ascertained to his satisfaction:

(1) That the public convenience and advantage will