HARRY HUGHES, Governor                                      1373

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

Approved May 13, 1986.

CHAPTER 355

(Senate Bill 669)

AN ACT concerning

Savings Bank Holding Companies

FOR the purpose of permitting the reorganization of a savings
bank into a mutual holding company and subsidiary savings
bank under certain circumstances; altering the definition of
a "savings bank" and defining certain related terms;
allowing issuance of capital stock by subsidiary savings
banks; providing procedures for reorganization, including
requirements for approval by the board of the savings bank
and by the Bank Commissioner; establishing criteria for
approval by the Bank Commissioner; providing for the
transfer of assets and the assumption of liabilities between
the mutual holding company and its subsidiary savings bank;
providing for the qualifications of the incorporators of a
subsidiary savings bank and requiring that the articles of
incorporation be filed with the Department of Assessments
and Taxation; providing for the effects of that filing;
providing for the perpetual existence of the subsidiary
sayings bank; prohibiting a subsidiary savings bank from
doing business until the subsidiary savings bank receives a
certificate of authority to do business and until the
required capital stock and surplus is paid in full;
authorizing the board of directors of a subsidiary savings
Bank to declare a cash dividend from certain surplus or
profits; authorizing the Bank Commissioner to evaluate the
assets of a subsidiary savings bank using certain methods;
providing the procedure for dissolution of a subsidiary
savings bank; establishing the respective rights, powers,
and privileges of the mutual holding company and its
subsidiary savings banks; providing for annual meetings and
the election of directors of a subsidiary savings bank;
providing for "the filling of vacancies on the board of
directors of a subsidiary savings bank; permitting officers,
employees, directors, or trustees of a mutual holding
company to serve in the same or similar capacities of one or
more subsidiaries capacity with its subsidiary savings bank;
permitting savings bank mutual holding companies to acquire
the assets or stock of a savings and loan association under
certain circumstances and with certain approvals; requiring
that examiners be given access to the records of a banking
institution's mutual holding company or other related entity