2606

LAWS OF MARYLAND

Ch. 698

(iv) Providing funds for liquidity to or
issuing obligations against the Fund for, or acquiring securities
of or from a member association, affiliate, or acquiring entity
in an emergency as determined by the Fund Director;

(v) Making capital contributions to member

associations or entities acquiring, consolidating, or merging

with, or acquiring assets and assuming obligations of, member
associations, if the Fund Director determines that:

1.  The amount of the capital contribution
is substantially less than the cost that the Fund would incur if
the member association were liquidated, including the cost of
reimbursing each savings account holder in the insured amount of
each savings account holder's deposit in the liquidated member
association; and

2.  The making of the capital contribution
is necessary to facilitate the acquisition, consolidation, or
mergers or transfers of assets and obligations; and

(vi) Paying to a receiver of any member
association in receivership under § 9-708 of this article at the
time of final distribution of the assets of the member
association a sum equal to the amount that the insurance
liability of the Fund has been reduced by reason of withdrawals
made during the pendency of a conservatorship or receivership of
the member association under any form of hardship withdrawal plan
or partial distribution of assets approved by the court having
jurisdiction over the receivership of the member association.

(3)  (i) Notwithstanding any other provision in this
section, the Fund Director shall notify the Legislative Policy
Committee of any proposed action by the Fund Director regarding
the making of a capital contribution under paragraph (2)(v) of
this subsection at least 21 days before the action regarding the
capital contribution is taken.

(ii) The Legislative Policy Committee shall
assign the proposed action by the Fund Director regarding the
making of a capital contribution for review by the appropriate
standing committees.

(4)  Any agreement specifying the terms and conditions
of a capital contribution under this section shall retain all
claims that the Fund may have against officers, directors,
employees, or agents of any acquired savings and loan
association. The Fund may condition the exercise of those claims
only to the extent deemed necessary for the protection of the
public interest and welfare and may provide for an
indemnification for reasonable expenses.

(b) The amount of loss to be protected against for each
depositor may not exceed the limit established from time to time