HARRY HUGHES, Governor                                      1699

practices after providing adequate opportunity for a hearing
before a certain body; and providing certain procedures to
be followed; and generally relating to the removal of the
director or officer of a savings and loan association.

BY adding to

Article - Financial Institutions
Section 8-402.1 8-402.2
Annotated Code of Maryland
(1980 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

8-402.1 8-402.2.

(A) (1) IF THE DIVISION DIRECTOR BELIEVES FINDS THAT A
DIRECTOR OR OFFICER OF A SAVINGS AND LOAN ASSOCIATION HAS ENGAGED
IN AN UNSAFE OR UNSOUND BANKING BUSINESS PRACTICE, THE DIVISION
DIRECTOR SHALL SEND A WRITTEN WARNING BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO THE DIRECTOR OR OFFICER.

(2) THE WARNING AND ITS SUBJECT MATTER SHALL REMAIN
CONFIDENTIAL BETWEEN THE DIVISION DIRECTOR AND THE DIRECTOR OR
OFFICER OF THE SAVINGS AND LOAN ASSOCIATION.

(B)  (1) IF THE DIVISION DIRECTOR FINDS THAT THE DIRECTOR OR
OFFICER HAS CONTINUED TO ENGAGE IN THE UNSAFE OR UNSOUND
PRACTICE, THE DIVISION DIRECTOR, WITH THE ADVICE OF THE BOARD OF
COMMISSIONERS, MAY SHALL REPORT THE FACTS TO THE SECRETARY OF
LICENSING AND REGULATION AND THE ATTORNEY GENERAL.

(2) A COPY OF THE REPORT SHALL BE SENT BY REGISTERED
MAIL TO EACH DIRECTOR OF THE BANKING INSTITUTION SAVINGS AND LOAN
ASSOCIATION.

(C)  (1) AFTER GIVING THE OFFICER OR DIRECTOR AN OPPORTUNITY
TO BE HEARD PROMPTLY BY THE BOARD OF SAVINGS AND LOAN
COMMISSIONERS, IF THE DIVISION DIRECTOR BOARD FINDS THAT THE
UNSAFE OR UNSOUND PRACTICE CONTINUED AFTER THE WARNING, THE
DIVISION DIRECTOR BOARD, WITH THE APPROVAL OF THE SECRETARY OF
LICENSING AND REGULATION, MAY REMOVE THE OFFICER OR DIRECTOR.

(2) A COPY OF THE REMOVAL ORDER SHALL BE SERVED ON
THE INDIVIDUAL REMOVED AND THE SAVINGS AND LOAN ASSOCIATION.

(2) THE HEARING SHALL BE PURSUANT TO THE
ADMINISTRATIVE PROCEDURE ACT.

(3) A COPY OF THE REMOVAL ORDER SHALL BE SERVED
IMMEDIATELY ON THE INDIVIDUAL REMOVED AND ON THE SAVINGS AND LOAN

ASSOCIATION.