3936

VETOES

Harry Hughes
Governor

House Bill No. 334

AN ACT concerning

Savings and Loan Associations - Removal of Director or Officer

FOR the purpose of empowering requiring the Director of the
Savings and Loan Division of the Department of Licensing and
Regulation to warn and remove a director or officer of a
savings and loan association for engaging in certain
practices; and after providing adequate opportunity for
hearing before a certain body; providing certain procedures
to be followed; and generally relating to grounds for 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.