PARRIS N. GLENDENING, Governor                              Ch. 326

(1)     May not make any payment on the principal of the transferable deferred
payment certificates that evidence payments to the initial guaranty fund; and

(2)     May not pay interest on the certificates unless the [Bank]
Commissioner OF FINANCIAL REGULATION approves the payment and the rate of
interest.

4-302.

(a)     Except as provided in this section, a savings bank may not reduce its guaranty
fund.

(b)     If the [ Bank] Commissioner determines that the guaranty fund of a savings
bank exceeds 5 percent of its total deposits and approves a reduction, the savings bank
may reduce its fund by the amount of the excess.

(c)     If a savings bank abandons a branch and the [ Bank] Commissioner approves
a reduction, the savings bank may reduce its guaranty fund by the amount of its addition
to the fund required for establishment of the branch.

(d)     (1) This subsection applies if the guaranty fund:

(i) Has reached 5 percent of the total deposits of the savings bank;
and

(ii) Later falls below that amount.

(2)     A savings bank may not pay any interest on its deposits so long as its
guaranty fund is less than 5 percent of its total deposits, unless the savings bank adds to
the fund, from net earnings for the year, money that equals at least 0.25 percent of its
total deposits.

(3)     If the [ Bank] Commissioner determines that a savings bank does not
have a guaranty fund equal to 5 percent of its total deposits, the [Bank] Commissioner
may require the savings bank:

(i) To add to the fund from its net earnings an amount of money, not
to exceed in any year 0.25 percent of its total deposits, that is sufficient to restore the fund
to 5 percent of its total deposits; and

(ii) Until the fund is restored, to reduce, by that amount, the interest
paid or payable to depositors of the savings bank.

(4)     The [ Bank] Commissioner may evaluate the assets of a savings bank by
a method that the Federal Deposit Insurance Corporation or any other appropriate
federal authority adopts.

4-507.

(a) Each director of a savings bank shall attend at least one half of the regularly
scheduled board meetings that are held during the director's term of office.

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