4114

LAWS OF MARYLAND

Ch. 4

thereafter shall be credited on the books of the State
Comptroller and expended, upon approval by the Board of Public
Works, for the following public purposes: to provide monies for
the Savings and Loan Association Capital Stabilization Fund
established under Section 1(4) of this Act or for the Maryland
Deposit Insurance Fund to be used as may be provided by law or
regulation applicable to that Fund.

(4)  (a) There is a Savings and Loan Association Capital
Stabilization Fund.

(b)  The Fund is a special, nonlapsing fund that
consists of any monies that may lawfully be paid, transferred, or
credited to the Fund, including any payments of dividends on or
on redemption of net worth certificates purchased with Fund

monies.

(c)  The Secretary of Licensing and Regulation shall
manage and supervise the Fund, provided that any disbursement
from or issuance of a claim on an obligation of the Fund shall be
subject to prior approval of the Governor. The Secretary of
Licensing and Regulation shall report monthly on the use of the
monies in the Fund to the Joint Budget and Audit Committee of the
General Assembly.

(d)  The State Treasurer shall hold, and the State
Comptroller shall account for, the Fund.

(e)  Except as otherwise provided by law, the Fund
shall be invested and reinvested in the same manner as other
State funds. Any investment earnings of the Fund shall be
retained to the credit of the Fund.

(5)  Monies in the Fund may be applied in the discretion of
the Governor to purchase net worth certificates of any Maryland
chartered savings and loan association if, in the opinion of the
Secretary of Licensing and Regulation, by so doing the savings
and loan association will qualify for insurance of its deposits
and accounts by the Federal Savings and Loan Insurance
Corporation. In anticipation of the issuance of the bonds
authorized by this Act, the Board of Public Works may authorize
the issuance to any such association of obligations payable from
monies credited to the Fund, including proceeds of the sale of
the bonds or bond anticipation notes hereby authorized, upon such
terms and conditions and for such consideration as the Board in
its discretion determines may reasonably be expected to effect
the purposes of this Act. Such obligations to an association
shall be deemed to be a capital asset of the association for all
statutory, regulatory, and accounting purposes.

(6)  There is hereby levied and imposed an annual State tax
on all assessable property in the State in rate and amount
sufficient to pay the principal of and interest on the bonds as
and when due and until paid in full, such principal to be
discharged within fifteen years of the date of issue of the
bonds.