HARRY HUGHES, Governor

3115

GENERAL COMMITTEE COMMENT:

Former CA § 6-228(d), which required a State
association that converted to a federal association to file
its federal charter with certain authorities, was deleted as
unenforceable.

SUBTITLE 7. INVOLUNTARY ACTIONS -- CONSERVATOR;
RECEIVERSHIP.

PART I. CONSERVATORSHIP.

9-701. CONSERVATOR.

(A)  PROCEEDINGS BY BOARD OF COMMISSIONERS.

THE BOARD OF COMMISSIONERS MAY INSTITUTE PROCEEDINGS IN
AN EQUITY COURT IN THE COUNTY WHERE THE PRINCIPAL OFFICE OF
A SAVINGS AND LOAN ASSOCIATION IS LOCATED FOR THE
APPOINTMENT OF A CONSERVATOR IF:

(1)  THE SAVINGS AND LOAN ASSOCIATION FAILS TO
COMPLY WITH A FINAL ORDER OF THE DIVISION DIRECTOR OR BOARD
OF COMMISSIONERS; OR

(2)  THE BOARD OF COMMISSIONERS CONSIDERS THAT
THE APPOINTMENT OF A CONSERVATOR IS IN THE PUBLIC INTEREST.

(B)  LIMITATION.

ONLY THE BOARD OF COMMISSIONERS MAY INSTITUTE
PROCEEDINGS FOR THE APPOINTMENT OF A CONSERVATOR.

(C)  COURT APPOINTMENT.

SUBJECT TO § 9-709 OF THIS SUBTITLE, A COURT MAY
APPOINT THE DIVISION DIRECTOR, DEPUTY DIRECTOR, OR AN
EXAMINER FROM THE DIVISION OF SAVINGS AND LOAN ASSOCIATIONS
AS CONSERVATOR IF THE COURT FINDS THAT A SAVINGS AND LOAN
ASSOCIATION IS:

(1)  IN AN IMPAIRED OR INSOLVENT CONDITION;

(2)  IN SUBSTANTIAL VIOLATION OF ANY LAW OR
REGULATION;

(3)  CONCEALING ANY OF ITS ASSETS OR RECORDS; OR

(4)  CONDUCTING AN UNSAFE OR UNSOUND OPERATION.

COMMITTEE COMMENT: This section replaces the first two
sentences and the first clause of the third
sentence of former Art. 23, § 161K(a).

In subsection (a)(1) of this section, the phrase
"a final order of the Division Director or Board