HARRY HUGHES, Governor

4121

(A) A savings and loan association shall have its savings

accounts insured by the Maryland [Savings-Share Insurance

Corporation] DEPOSIT INSURANCE FUND CORPORATION or the Federal
Savings and Loan Insurance Corporation.

(B)(1) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A) OF
THIS SECTION, A SAVINGS AND LOAN ASSOCIATION MAY BE PERMITTED TO
OPEN AND CONDUCT BUSINESS IF THE GOVERNOR DETERMINES THAT SUCH
ASSOCIATION:

(I) HAS RECEIVED PRELIMINARY APPROVAL FOR
INSURANCE BY THE FEDERAL SAVINGS AND LOANS INSURANCE CORPORATION
(FSLIC); AND

(II) WOULD PROBABLY QUALIFY FOR SUCH INSURANCE
UNDER THE APPLICABLE STANDARDS OF THE FSLIC.

(2) IF A SAVINGS AND LOAN ASSOCIATION, THE SAVINGS
ACCOUNTS OF WHICH ARE INSURED BY THE MARYLAND SAVINGS SHARE
INSURANCE CORPORATION ON MAY 16, 1985, IS A SUBSIDIARY OF A
CORPORATION THAT OWNS ANOTHER SAVINGS AND LOAN ASSOCIATION
INCORPORATED IN ANOTHER STATE, THE SAVINGS AND LOANS ASSOCIATIONS
SAVINGS ACCOUNTS MAY BE INSURED BY THE FUND UNTIL JULY 1, 1987.

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s)
10-101 through 10-117, inclusive, and the title "Title 10.
Maryland Savings-Share Insurance Corporation" of Article
Financial Institutions of the Annotated Code of Maryland be
repealed.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article - Financial Institutions

TITLE 10. STATE OF MARYLAND DEPOSIT INSURANCE
FUND CORPORATION

10-101.

(A)  IN THIS TITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)  "ASSOCIATION" MEANS A CORPORATION OR MUTUAL
ASSOCIATION THAT IS CHARTERED UNDER THE LAWS OF THIS STATE AS A
SAVINGS AND LOAN ASSOCIATION.

(C)  "BOARD" MEANS THE BOARD OF DIRECTORS OF THE STATE OF
MARYLAND DEPOSIT INSURANCE FUND CORPORATION.

(D)  "DIVISION DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION
OF SAVINGS AND LOAN ASSOCIATIONS.