§ 4-208. Initial guaranty fund requirements

   (a) In general. -- 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) Branches. --

   (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.

HISTORY: CA § 6-107, 6-108; 1980, ch. 33, § 2; 1982, ch. 882; 1996, ch. 326, § 2.