HARRY HUGHES, Governor

263

(1)       BEFORE A SAVINGS BANK ESTABLISHES A BRANCH,
THE SAVINGS BANK SHALL HAVE A GUARANTY FUND AS PROVIDED IN
THIS SUBSECTION.

(2)       FOR A BRANCH THAT IS TO BE LOCATED INSIDE
THE MUNICIPAL AREA OF THE PRINCIPAL BANKING OFFICE OF THE
SAVINGS BANK, THE SAVINGS BANK SHALL HAVE A GUARANTY FUND OF
NOT LESS THAN 5 PERCENT OF ITS TOTAL DEPOSITS.

(3)       FOR A BRANCH THAT IS TO BE LOCATED OUTSIDE
THE MUNICIPAL AREA OF THE PRINCIPAL BANKING OFFICE OF THE
SAVINGS BANK, THE SAVINGS BANK SHALL HAVE A GUARANTY FUND OF
NOT LESS THAN THE SUM OF:

(I)       5 PERCENT OF ITS TOTAL DEPOSITS; AND

(II)       THE MINIMUM CAPITAL AND SURPLUS THAT
IS REQUIRED FOR FORMATION OF A STATE BANK IN THE SAME
MUNICIPAL AREA OF THE PROPOSED BRANCH.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6—107 (a) and
(d) and the second sentence of CA § 6—108.

In subsection (b)(2) of this section, the present
provision for deducting from the amount of
capital and surplus "any amount by which the
guaranty fund of the savings institution exceeds
this required minimum" is deleted.           The

Commission to Revise the Annotated Code believes
this unnecessary provision was carried over to
the savings banks inadvertently in tracking
parallel provisions for branches of State banks.
As to the minimum capital requirement for State
banks, see § 3—209 of this article.

As to the present requirement that payments to
the fund be in cash and as to the transferable
deferred payment certificates, which evidence
payment, see § 4—209 of this subtitle.

As to the prohibition against doing business
without a certificate, see § 4—207 of this
subtitle.

As to additions to the guaranty fund and

limitations on its reduction, see Subtitle    3 of

this title and the General Revisor's Note to    that
subtitle.

The term "municipal area" is defined in § 1-101
of this article.

4-209. FUND PAYMENTS BEFORE BEGINNING BUSINESS.

(A) FORM AND EVIDENCE OF PAYMENT.