4088                                              EXECUTIVE ORDERS

1985.

EXECUTIVE ORDER OF NOVEMBER 12, 1985

01.01.1985.32

SAVINGS AND LOAN ASSOCIATIONS - EMERGENCY REGULATIONS

WHEREAS, On May 17, 1985, the General Assembly passed seven

emergency bills to remedy the problem of financial

instability in savings and loan associations, which bills

were signed into law and became effective on May 18, 1985;
and

WHEREAS, Chapter 1 of the Laws of the 1985 Extraordinary Session
(Senate Bill 1) provides broad authority to the Governor to
effectively manage the emergency situation, including the
authority to exercise the powers of the Board of Savings and
Loan Commissioners and the Director of the Division of
Savings and Loan Associations; and

WHEREAS, Extensive investigation has revealed that certain
savings and loan associations which have been found to have
been operating in an unsafe and unsound manner had been
involved in substantial insider transactions which
threatened the liquidity and solvency of the association;
and

WHEREAS, Investigation has revealed that certain savings and loan
associations used complicated corporate structures,
including parents, subsidiaries and affiliates, in order to
avoid Maryland laws and regulations and thereby carry out
unsafe and unsound practices; and

WHEREAS, Immediate changes in existing regulations of the
Division of Savings and Loan Associations are required in
order to protect the welfare of depositors of the State of
Maryland preventing further practices which have impaired
the liquidity or solvency of certain savings and loan
associations or, which have led to unsafe or unsound
operations;

NOW, THEREFORE, I, HARRY HUGHES, GOVERNOR OF THE STATE OF
MARYLAND, BY VIRTUE OF THE AUTHORITY VESTED IN ME BY THE
CONSTITUTION AND LAWS OF MARYLAND, INCLUDING BUT NOT LIMITED
TO ARTICLE 41, §§ 15B, 15B-2, AND 15B-3, HEREBY PROCLAIM
THAT A STATE OF PUBLIC CRISIS AND EMERGENCY EXISTS WITHIN
THE STATE OF MARYLAND AND HEREBY ORDER THAT THE REGULATIONS
AND AMENDMENTS TO REGULATIONS SET FORTH IN ATTACHMENT "A"
HERETO ARE HEREBY ADOPTED TO APPLY PROSPECTIVELY AS
REGULATIONS OF THE DIVISION OF SAVINGS AND LOAN