HARRY HUGHES, Governor

7

BY repealing and reenacting, with amendments,

Article - Financial Institutions
Section 9-701, 9-702, and 9-708
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

9-701.

(a) The Board of Commissioners may institute proceedings in
an equity court THE CIRCUIT COURT in the county where the
principal office of a savings and loan association is located for
the appointment of a conservator if:

(1)  The savings and loan association fails to comply
with a final order of the Division Director or Board of
Commissioners; or

(2)  The Board of Commissioners considers that the
appointment of a conservator is in the public interest.

; (b) [Only] EXCEPT AS PROVIDED IN TITLE 10 OF THIS ARTICLE,
ONLY the Board of Commissioners may institute proceedings for the
appointment of a conservator.

(c) Subject to § 9-709 of this subtitle, a court may
appoint the Division Director, deputy director, or an examiner
from the Division of Savings and Loan Associations as conservator
if the court finds that a savings and loan association is:

(1)  In an impaired or insolvent condition;

(2)  In substantial violation of any law or
regulation;

(3)  Concealing any of its assets or records; [or]

(4)  Conducting an unsafe or unsound operation;

(5)  IN NEED OF THE APPOINTMENT OF A CONSERVATOR IN
ORDER TO PRESERVE THE ASSETS OF THE SAVINGS AND LOAN ASSOCIATION
FOR THE BENEFIT OF THE DEPOSITORS AND CREDITORS; OR

(6)  ELIGIBLE FOR CONSERVATORSHIP UNDER THE PROVISIONS
OF TITLE 10 OF THIS ARTICLE.

9-702.