HARRY HUGHES, Governor

857

CHAPTER 235

(Senate Bill 240)

AN ACT concerning

Bank Commissioner - Liquidation

FOR the purpose of empowering the Bank Commissioner under a
certain condition to appoint the Federal Deposit
Insurance Corporation as receiver for any banking
institution under his possession; setting forth when
transference of possession occurs; relieving the
Commissioner from liability and responsibility with
respect to the liquidation of such institutions;
permitting the Corporation to liquidate pursuant to
Maryland or federal laws; and permitting the
Corporation the right to operate the trust department
of any such institution.

BY adding to

Article 11 - Banks and Trust Companies

Section 16A

Annotated Code of Maryland

(1976 Replacement 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be repealed, amended, or enacted to read as follows: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 11 - Banks and Trust Companies

16A.

THE BANK COMMISSIONER MAY APPOINT THE FEDERAL DEPOSIT
INSURANCE CORPORATION AS RECEIVER FOR ANY BANKING
INSTITUTION OF WHICH HE IS IN POSSESSION AND WHOSE DEPOSITS
ARE INSURED BY SUCH CORPORATION. IMMEDIATELY UPON FILING
WITH THE COURT A CERTIFICATE OF ACCEPTANCE WHICH IT
APPROVES, THE PROPERTY, ASSETS, AND BUSINESS OF SUCH
INSTITUTION SHALL BE CONSIDERED TO BE IN THE POSSESSION OF
THE FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER. THE
BANK COMMISSIONER SHALL BE THEREAFTER RELIEVED FROM ALL
RESPONSIBILITY AND LIABILITY WITH RESPECT TO THE LIQUIDATION
OF THE INSTITUTION.

THE FEDERAL DEPOSIT INSURANCE CORPORATION MAY LIQUIDATE
THE BANKING INSTITUTION IN THE MANNER PERMITTED BY THE LAWS
OF THE UNITED STATES OR BY ARTICLE 11 OF THE MARYLAND
ANNOTATED CODE, INCLUDING THE RIGHT TO OPERATE THE TRUST
DEPARTMENT OF ANY SUCH INSTITUTION WHICH IS QUALIFIED TO DO
THE BUSINESS OF A TRUST COMPANY.