24

LAWS OF MARYLAND

Ch. 6

(1)  BECOME INDEBTED TO ANY MEMBER ASSOCIATION; OR

(2)  ENGAGE OR BE INTERESTED IN THE SALE OF SECURITIES
OF OR IN THE NEGOTIATION OF LOANS FOR OTHERS TO OR WITH ANY
MEMBER ASSOCIATION.

(B)  THIS SECTION DOES NOT APPLY TO A LOAN THAT A MEMBER
ASSOCIATION MAKES TO A DEPOSITOR IF THE LOAN IS LESS THAN THE
AMOUNT OF THE DEPOSIT.

(C)  ANY PERSON WHO VIOLATES ANY PROVISION OF THIS SECTION
IS SUBJECT TO DISMISSAL.

10-110.

(A) (1) THE MONEYS OF THE MARYLAND DEPOSIT INSURANCE FUND
CORPORATION SHALL BE MAINTAINED IN A SPECIAL NONLAPSING FUND, TO
BE CALLED THE "MARYLAND DEPOSIT INSURANCE FUND".

(2) THE FUND DIRECTOR SHALL ADMINISTER THE MARYLAND
DEPOSIT INSURANCE FUND FOR THE PURPOSES OF:

(I)  INSURING THE SAVINGS ACCOUNTS OF MEMBER
ASSOCIATIONS;

(II)  PURCHASING CAPITAL INSTRUMENTS, INCLUDING
NET WORTH CERTIFICATES, ISSUED BY A MEMBER ASSOCIATION TO ENABLE
THAT MEMBER ASSOCIATION TO QUALIFY FOR FEDERAL INSURANCE;

(III)  REIMBURSING SAVINGS ACCOUNT HOLDERS FOR
LOSS INCURRED UPON LIQUIDATION OF A MEMBER ASSOCIATION, UP TO THE
AMOUNT OF INSURANCE ON ANY SAVINGS ACCOUNT; AND

(IV)  PROVIDING FUNDS FOR LIQUIDITY TO A MEMBER
ASSOCIATION IN AN EMERGENCY.

(B)  THE AMOUNT OF LOSS TO BE PROTECTED AGAINST FOR EACH
DEPOSITOR MAY NOT EXCEED THE LIMIT ESTABLISHED FROM TIME TO TIME
BY THE RULES AND REGULATIONS OF THE FUND. THIS LIMIT MAY NOT
EXCEED THE AMOUNT OF FEDERAL INSURANCE.

10-111.

(A)  (1) ANY ASSOCIATION OR THE INCORPORATORS OF A PROPOSED
ASSOCIATION MAY APPLY TO THE FUND DIRECTOR TO BECOME A MEMBER
ASSOCIATION.

(2) THE FUND DIRECTOR SHALL REFER EACH APPLICATION
RECEIVED TO THE DIVISION DIRECTOR FOR CERTIFICATION OF
INSURABILITY.

(B)  IF THE DIVISION DIRECTOR APPROVES THE FINANCIAL
AFFAIRS, SOLVENCY, MANAGEMENT, AND BOARD OF DIRECTORS OF AN
ASSOCIATION OR PROPOSED ASSOCIATION FOR INSURANCE OF SAVINGS
ACCOUNTS, THE DIVISION DIRECTOR SHALL SO CERTIFY TO THE FUND
DIRECTOR.