HARRY HUGHES, Governor

267

(3)   IF THE BANK COMMISSIONER DETERMINES THAT A
SAVINGS BANK DOES NOT HAVE A GUARANTY FUND EQUAL TO 5
PERCENT OF ITS TOTAL DEPOSITS, THE BANK COMMISSIONER MAY
REQUIRE THE SAVINGS BANK:

(I)   TO ADD TO THE FUND FROM ITS NET
EARNINGS AN AMOUNT OF MONEY, NOT TO EXCEED IN ANY YEAR 0.25
PERCENT OF ITS TOTAL DEPOSITS, THAT IS SUFFICIENT TO RESTORE
THE FOND TO 5 PERCENT OF ITS TOTAL DEPOSITS; AND

(II)   UNTIL THE FUND IS RESTORED, TO
REDUCE, BY THAT AMOUNT, THE INTEREST PAID OK PAYABLE TO
DEPOSITORS OF THE SAVINGS BANK.

(4)   THE BANK COMMISSIONER MAY EVALUATE THE
ASSETS OF A SAVINGS BANK BY A METHOD THAT THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER APPROPRIATE
FEDERAL AUTHORITY ADOPTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last sentence
of Art. 11, § 39(e) and from Art. 11, § 40(e),
the first sentence of § 42, and the last sentence
of the first paragraph and the entire second
paragraph of § 43.

Subsection (c) of this section is revised to
require approval of the Bank Commissioner for a
reduction on abandonment of a branch. Present
Art. 11, § 40(e) provides, in part, that a
savings bank "may..., with the approval of the
Bank Commissioner, reduce said minimum guarantee
fund ... and may reduce the addition to said
guarantee fund...". Although repetition of the
word "may" would seem to exclude a reduction of a
branch addition from the requirement for approval
of the Bank Commissioner, in light of the
impairment of the fund that might result from a
reduction, the Commission to Revise the Annotated
Code has revised subsection (c) of this section
to add an approval requirement.

Subsection (d) (1) of this section is new language
substituted for the phrase "... until such
guarantee fund shall amount to..." to clarify the
time period to which this subsection applies.
The present language Inaccurately suggests that
these additions are required from the time the
savings bank is formed until the time it has a
fund equal to 5 percent of its total deposits.
During that period, the savings bank operates
with its initial guaranty fund and, under §
4-301(b) of this subtitle, adds to the fund 10
percent of its net earnings, before interest.

In subsection (d) (2) and (3) of this section,
references to fund additions are substituted for