WILLIAM DONALD SCHAEFER, Governor                     Ch. 80

BY adding to

Article - Financial Institutions

Section 5-1008

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

Preamble

WHEREAS, Currently, there remain approximately 40 savings
and loan associations that are insured by the State of Maryland
Deposit Insurance Fund Corporation (the Fund), with a total asset
base of approximately $148 million; and

WHEREAS, By July 1, 1989, these associations must either
obtain insurance from the Federal Savings and Loan Insurance
Corporation (FSLIC) or be acquired or liquidated; and

WHEREAS, It is unlikely that the 40 remaining savings and
loan associations will obtain insurance from the FSLIC before
July 1, 1989; and

WHEREAS, It is in the interest of the State of Maryland to
minimize additional exposure to the Fund in the event of the
liquidation of any of the 40 remaining member associations; and

WHEREAS, Allowing the deposits of remaining associations
that are insured by the Fund to be acquired by an out-of-state
bank holding company through the prompt acquisition of a Maryland
bank would provide an additional avenue whereby to lessen the
Fund's exposure and provide some relief to the remaining
associations; and

WHEREAS, Allowing such acquisitions by out-of-state bank
holding companies must be subject to sufficiently strict
requirements so as to prevent out-of-state bank holding companies
from entering the State without making a substantial commitment
to the State to acquire deposit liability insured by the Fund;
now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

5-1001.

(j) (1) "Maryland bank" means:

(i) A bank organized under either Title 3 or
Title 4 of this article and, in either case, having banking
offices located only in this State; [or]

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