HARRY HUGHES, Governor

79

FOR the purpose of authorizing the Director of the Division of
Savings and Loan Associations to convert State-chartered
mutual associations to capital stock associations under
certain circumstances; authorizing the Division Director to
approve modified conversions or voluntary supervisory stock
conversions on the same terms and conditions permitted or
required under federal law after making certain
determinations; authorizing the Board of Commissioners to
provide procedural rules, conditions for final approval,
approval of the chartering of a capital stock association to
merge or acquire assets, and to exercise general rulemaking
authority; providing for the cessation of certain rights of
account holders under certain circumstances; providing for
the exemption from certain standard requirements for
transactions, including initial incorporation or
capitalization, conversion, consolidation, merger, or
transfer of assets, and procedural rights under certain
circumstances; making this Act an emergency measure; and
generally relating to the conversion and acquisition of
mutual associations to capital stock associations.

BY adding to

Article - Financial Institutions
Section 9-611 and 9-612
Annotated Code of Maryland
(1980 Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

9-611.

(A)  IN THIS SECTION "SAVINGS AND LOAN ASSOCIATION" MEANS A
SAVINGS AND LOAN ASSOCIATION ORGANIZED UNDER THIS TITLE AS A
MUTUAL ASSOCIATION.

(B)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, THE
DIVISION DIRECTOR MAY APPROVE A CONVERSION OF A SAVINGS AND LOAN
ASSOCIATION TO A CAPITAL STOCK ASSOCIATION THAT DEVIATES FROM THE
STANDARD REQUIREMENTS OF THIS TITLE IF THE CIRCUMSTANCES OF THE
CONVERSION WOULD, UNDER FEDERAL LAW, PERMIT THE FEDERAL HOME LOAN
BANK BOARD TO AUTHORIZE A MODIFIED CONVERSION.

(C)  THE DIVISION DIRECTOR MAY APPROVE A MODIFIED CONVERSION
ONLY IF:

(1) THE DIVISION DIRECTOR DETERMINES THAT:

(I) THE STABILITY OF THE SAVINGS AND LOAN
ASSOCIATION IS THREATENED BY SEVERE FINANCIAL DIFFICULTIES;