4048

VETOES

(3) IS A MEMBER OF THE FEDERAL DEPOSIT INSURANCE
CORPORATION .; AND

(4) IS ORGANIZED TO RECEIVE ASSETS AND LIABILITIES OF
A MUTUAL HOLDING COMPANY IN ACCORDANCE WITH THIS SUBTITLE AND
SUBTITLE 9 OF THIS TITLE.

(D) "MUTUAL HOLDING COMPANY" MEANS THE CORPORATION WHICH
HOLDS ALL THE SHARES OF A SUBSIDIARY SAVINGS BANK PURSUANT TO A

REORGANIZATION UNDER SUBTITLE 8 OF THIS TITLE.

4-401.

UNLESS ORGANIZED AS A SUBSIDIARY SAVINGS BANK, AS DEFINED IN
THIS TITLE,[A] A savings bank is a mutual association and may not
have any capital stock.

SUBTITLE 8. HOLDING COMPANIES

4-801.

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B) "SAVINGS AND LOAN ASSOCIATION" MEANS A SAVINGS AND LOAN
ASSOCIATION ORGANIZED UNDER TITLE 9 OF THIS ARTICLE AND INSURED
BY THE MARYLAND DEPOSIT INSURANCE FUND CORPORATION.

(C) "SUBSIDIARY SAVINGS BANK" MEANS ANY SAVINGS BANK

INCORPORATED AND ORGANIZED AS PROVIDED IN THIS SUBTITLE, A
MAJORITY OF THE ORDINARILY VOTING SHARES OF WHICH IS OWNED BY A
HOLDING COMPANY.

(D) "HOLDING COMPANY" MEANS ANY SAVINGS BANK REORGANIZED
UNDER THIS SUBTITLE TO HOLD A MAJORITY OF THE ORDINARILY VOTING
SHARES OF A SUBSIDIARY SAVINGS BANK.

4-802.

(A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY SAVINGS
BANK MAY BE REORGANIZED IN ORDER TO BECOME A HOLDING COMPANY BY:

(1) CAUSING A SUBSIDIARY SAVINGS BANK TO BE

INCORPORATED UNDER THE LAWS OF THIS STATE; AND

(2) TRANSFERRING A SUBSTANTIAL PART OF THE SAVINGS
BANK'S ASSETS TO THE SUBSIDIARY SAVINGS BANK AND CAUSING THE
SUBSIDIARY SAVINGS BANK TO ASSUME A SUBSTANTIAL PART OF THE
SAVINGS BANK'S LIABILITIES, INCLUDING ALL DEPOSITARY LIABILITIES.

(B) AFTER TRANSFER AND ASSUMPTION, PERSONS WITH PRIOR
CORRESPONDING RIGHTS AS DEPOSITORS OR CREDITORS AGAINST A SAVINGS
BANK SHALL HAVE THE SAME RIGHTS SOLELY AGAINST A SUBSIDIARY
SAVINGS BANK AS TO THE LIABILITIES AND OBLIGATIONS ASSUMED BY THE
SUBSIDIARY SAVINGS BANK.