HARRY HUGHES, Governor

637

CHAPTER 105

(Senate Bill 260)

AN ACT concerning

Savings and Loan Associations - Depository Functions

FOR the purpose of authorizing savings and loan associations
to act as depositories of certain governmental funds;
permitting those associations to take certain action in
order to qualify as depositories of those funds; and
setting forth the priority of those funds.

BY adding to

Article - Corporations and Associations

Section 6-212(c)

Annotated Code of Maryland

(1975 Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Corporations and Associations

6-212.

(C) NOTWITHSTANDING THE REQUIREMENTS OF SUBSECTION
(A), A SAVINGS AND LOAN ASSOCIATION MAY:

(1)   ACT AS DEPOSITORY OF FUNDS OF:

(I)   THE UNITED STATES AND ITS AGENCIES;
AND

(II)  THE STATE OF MARYLAND AND ITS
POLITICAL SUBDIVISION SUBDIVISIONS;

(2)   PLEDGE COLLATERAL TO SECURE THE DEPOSITS
UNDER THIS SUBSECTION; AND

(3)   ACCEPT DEPOSITS UNDER THIS SUBSECTION ON
THE TERMS REQUIRED BY THE DEPOSITOR. DEPOSITORS UNDER THIS
SUBSECTION SHALL BE CONSIDERED GENERAL CREDITORS OF THE
ASSOCIATION FOR PURPOSES OF COMPLIANCE WITH ARTICLE 23, §
161X(C) OF THE CODE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 1, 1979.