§ 4-208
194 words·~1 min read·
/md/financial-institutions/4-208A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§4–208.
(a)Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least:
(1)The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and
(2)Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent.
(1)Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection.
(2)For a branch that is to be located inside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than 5 percent of its total deposits.
(3)For a branch that is to be located outside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than the sum of:
(i)5 percent of its total deposits; and
(ii)The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch.