HARRY HUGHES, Governor                                              63

clothe, and maintain the health of themselves and their families;
and

WHEREAS, This proposed legislation will provide full and
immediate access by depositors in Merritt Savings and Loan,
Friendship Savings and Loan and Chesapeake Savings and Loan
Associations to the $500,000,000 in deposits held in these
institutions; and

WHEREAS, The enactment of this legislation is an important
step towards providing relief to those depositors who are
restricted from withdrawing funds from their accounts in those
savings and loan associations that still will be subject to
restrictions and withdrawals; and

WHEREAS, It is the policy of the General Assembly to
preserve the financial integrity of the deposits in savings and
loan associations, and to relieve the financial burden on
depositors whose deposits are subject to withdrawal restrictions;
and, at the same time minimize the impact on the taxpayer of the
State's potential liability under the State of Maryland Deposit
Insurance Fund Corporation; and

WHEREAS, On October 15, 1985 the Executive Branch made a
commitment to develop a plan to assist depositors to obtain
access to their frozen deposits in cases of hardship; and

WHEREAS, The Maryland General Assembly agrees that a

Depositor's Plan must be developed as soon as possible in order
to assist those depositors that are not allowed access to their
deposits despite this Act; now, therefore,

WHEREAS, Since May of 1985, due to the savings and loan
crisis, thousands of citizens and depositors at savings and loan
associations have had to endure prohibitions and limitations on
access to their own funds, enormous inconvenience, significant
suffering, and tragic hardships; and

WHEREAS, To address the savings and loan crisis and prevent
further deterioration of the situation, the First Special Session
of the General Assembly in 1985 was called and established the
State of Maryland Deposit Insurance Fund Corporation (MDIF) as a
successor corporation to the Maryland Savings-Share Insurance
Corporation (MSSIC) by merger, provided that the State assume the
insurance responsibilities of MSSIC - a private insurance
corporation - under the same terms and conditions provided by
MSSIC, stated the policy of the State to appropriate funds to
protect holders of savings accounts in MDIF-insured associations,
required these institutions to obtain federal insurance by
certain dates, provided aid to allow these institutions to meet
the federal requirements, and undertook other measures; and

WHEREAS, The State remains committed to resolving the
problems created by the savings and loan crisis and its inherent