WILLIAM DONALD SCHAEFER, Governor

The liability the State assumed for repaying the savings and loan
depositors is being funded primarily from the general fund. By
the end of calendar year 1989, over $396 million of general funds
will have been used for this purpose. Returning the savings and
loan recoveries to the general fund will mitigate, to a small
extent, the restraint that has been imposed on general fund
programs by the State's commitment to the savings and loan
depositors. In addition, by maintaining the discretion that the
current law provides, the Governor and the General Assembly will
be able to make the appropriate decision concerning the use of
recovered funds on the basis of economic conditions and budgetary
needs that exist at that time.

For these reasons, I have decided to veto Senate Bill 631.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 631

AN ACT concerning

Revenue Stabilization Account State Reserve Fund
- Moneys Recovered by
Maryland Deposit Insurance Fund

FOR the purpose of providing that on and after a certain date
certain moneys recovered by the Maryland Deposit Insurance
Fund Corporation shall be first applied to repay any
monetary advance by the State to the Fund transferred to the
State Reserve Fund; and providing that certain moneys
recovered by the Fund shall be transferred to the Revenue
Stabilization Account and the Dedicated Purpose Account of
the State Reserve Fund.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 10-110.2 and 10-120(b)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 Supplement)

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

Article - Financial Institutions

10-110.2.

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