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LAWS OF MARYLAND

Ch. 33

RATE OF INTEREST.

(B) ADDITIONS TO FUND.

IF A SAVINGS BANK HAS A GUARANTY FUND THAT IS LESS THAN
5 PERCENT OF ITS TOTAL DEPOSITS, THE SAVINGS BANK SHALL ADD
TO ITS INITIAL GUARANTY FUND, AT THE END OF EACH FISCAL
YEAR, AT LEAST 10 PERCENT OF ITS NET EARNINGS, CALCULATED
BEFORE INTEREST ON THE TRANSFERABLE DEFERRED PAYMENT
CERTIFICATES.

REVISOR'S NOTE: This section is new language derived
without substantive change from CA § 6-107(c) and
from the first sentence of Art. 11, § 39(e).

The balance of present CA § 6—107, which provides
for the initial guaranty fund and branch
additions, now appears in §§ 4-208 and 4-209 of
this title.

4-302. MAINTENANCE OF FUND.

(A)       LIMITATIONS ON REDUCTION.

EXCEPT AS PROVIDED IN THIS SECTION, A SAVINGS BANK MAY
NOT REDUCE ITS GUARANTY FOND.

(B)   REDUCTION OF EXCESS.

IF THE BANK COMMISSIONER DETERMINES THAT THE      GUARANTY

FUND OF A SAVINGS BANK EXCEEDS 5 PERCENT OF    ITS TOTAL

DEPOSITS AND APPROVES A REDUCTION, THE SAVINGS      BANK MAY
REDUCE ITS FUND BY THE AMOUNT OF THE EXCESS.

(C)   REDUCTION ON ABANDONMENT OF BRANCH.

IF A SAVINGS BANK ABANDONS A BRANCH AND THE BANK
COMMISSIONER APPROVES A REDUCTION, THE SAVINGS BANK MAY
REDUCE ITS GUARANTY FUND BY THE AMOUNT OF ITS ADDITION TO
THE FUND REQUIRED FOR ESTABLISHMENT OF THE BRANCH.

(D)   LIMITATIONS ON INTEREST ON DEPOSITS.

(1)   THIS SUBSECTION APPLIES IF THE GUARANTY
FUND:

(I)   HAS REACHED 5 PERCENT OF THE TOTAL
DEPOSITS OF THE SAVINGS BANK; AND

(II)   LATER FALLS BELOW THAT AMOUNT.

(2)   A SAVINGS BANK MAY NOT PAY ANY INTEREST ON
ITS DEPOSITS SO LONG AS ITS GUARANTY FUND IS LESS THAN 5
PERCENT OF ITS TOTAL DEPOSITS, UNLESS THE SAVINGS BANK ADDS
TO THE FUND, FROM NET EARNINGS FOR THE YEAR, MONEY THAT
EQUALS AT LEAST 0.25 PERCENT OF ITS TOTAL DEPOSITS.