268

LAWS OF MARYLAND

Ch. 33

the language in present Art. 11, §42 "reserved
and set aside, as a guarantee fund" and in the
last sentence of present Art. 11, § 43 "set aside
... as an addition ..." to clarify that there is
one fund to which additions are made.

In subsection (d)(3)(ii) of this section, the
phrase "to depositors of the savings bank" is
added for clarity.

In subsection (d)(4) of this section, the agency
name and the phrase "or any other appropriate
federal authority" are substituted for the
reference in present Art. 11, § 43 to "the
federal bank supervisory agencies" for clarity.

The reference in present Art. 11, § 42 to paying
interest from "net earnings" is deleted as
unnecessary, in light of the requirement of
present Art. 11, § 43 — now § 4-303 of this
subtitle — to the same effect.

The reference in present Art. 11, § 41(a) to
maintaining the fund "for the protection of
depositors" is deleted as unnecessary.

The reference in present Art. 11, § 42 to
"declare ... any dividend" is deleted as obsolete
and, given the reference to "interest",
unnecessary.

The balance of present Art. 11, § 40, which
provides for establishment of branches, now
appears in § 5—501 of this article.

4-303. INTEREST ON DEPOSITS.

(A)        IN GENERAL.

A SAVINGS BANK MAY PAY INTEREST ON ITS DEPOSITS ONLY
FROM ITS PROFITS, AFTER DEDUCTING EXPENSES FOR MANAGEMENT,
LOSSES, NECESSARY CREDITS TO PREMIUM ACCOUNTS, TAXES, AND
REQUIRED ADDITIONS TO THE GUARANTY FUND.

(B)       BOND PREMIUMS.

IN DETERMINING ITS PROFITS, A SAVINGS BANK IS NOT
REQUIRED, AS TO ANY BOND THAT IT BUYS OR HOLDS, TO CHARGE
OFF FROM THE PREMIUM OF THE BOND MORE THAN AN AMOUNT
PROPORTIONATE TO THE LIFE OF THE BOND.

REVISOR'S NOTE: This section is new language derived
without substantive change from the first and
second sentences of Art. 11, § 43.

In subsection (a) of this section, the phrase
"required additions to the guaranty fund" is