Maryland Statutes
Subtitle 2 - Formation and Powers
Section 4-208 - Initial Guaranty Fund Requirements

(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.
    (b)    (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.

Structure Maryland Statutes