HARRY HUGHES, Governor

1385

(A) AFTER ITS ARTICLES OF INCORPORATION ARE FILED FOR
RECORD AND ITS REQUIRED CAPITAL STOCK AND SURPLUS ARE PAID IN
FULL, THE SUBSIDIARY SAVINGS BANK SHALL GIVE TO THE BANK
COMMISSIONER NOTICE THAT THE SUBSIDIARY SAVINGS BANK HAS COMPLIED
WITH ALL OF THE APPLICABLE PROVISIONS OF THIS SUBTITLE.

(B) THE BANK COMMISSIONER SHALL EXAMINE THE CONDITION OF
THE SUBSIDIARY SAVINGS BANK TO DETERMINE:

(1) THE NAME AND RESIDENCE OF EACH DIRECTOR;

(2) IF THE REQUIRED CAPITAL STOCK AND SURPLUS ARE
PAID IN FULL; AND

(3) IF THE SUBSIDIARY SAVINGS BANK HAS COMPLIED WITH
ALL OTHER APPLICABLE PROVISIONS OF THIS TITLE.

(C) IF, AFTER EXAMINATION, IT APPEARS THAT THE SUBSIDIARY
SAVINGS BANK LAWFULLY IS ENTITLED TO DO BUSINESS, THE BANK
COMMISSIONER SHALL ISSUE THE CERTIFICATE OF AUTHORITY TO DO
BUSINESS.

(D) (1) IF, AFTER EXAMINATION, IT APPEARS THAT THE REQUIRED
CAPITAL STOCK AND SURPLUS HAS NOT BEEN PAID IN FULL, THE BANK
COMMISSIONER MAY NOT ISSUE THE CERTIFICATE OF AUTHORITY TO DO
BUSINESS.

(2) IF, AFTER EXAMINATION, THE BANK COMMISSIONER HAS
REASON TO BELIEVE THAT THE STOCKHOLDERS FORMED THE SUBSIDIARY
SAVINGS BANK FOR ANY PURPOSE OTHER THAN LEGITIMATE BUSINESS UNDER
THIS ARTICLE, THE BANK COMMISSIONER, WITH THE ADVICE AND CONSENT
OF THE SECRETARY OF LICENSING AND REGULATION, MAY WITHHOLD THE
CERTIFICATE.

4-908.

AFTER PROVIDING FOR DUE OR ACCRUED EXPENSES, LOSSES,
INTEREST, AND TAXES, THE BOARD OF DIRECTORS OF A SUBSIDIARY
SAVINGS BANK MAY DECLARE A CASH DIVIDEND ONLY FROM THE FOLLOWING;

(1) ITS UNDIVIDED PROFITS; OR

(2) WITH THE APPROVAL OF THE BANK COMMISSIONER, ITS
SURPLUS IN EXCESS OF 100 PERCENT OF ITS REQUIRED CAPITAL STOCK.

4-909.

THE BANK COMMISSIONER MAY EVALUATE THE ASSETS OF A
SUBSIDIARY SAVINGS BANK BY A METHOD THAT THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER APPROPRIATE FEDERAL AUTHORITY
ADOPTS FOR THE EVALUATION OF SUCH ASSETS.

4-910.