Financial Institutions (GFI) — Title 10. State of Maryland Deposit Insurance Fund Corporation
Statutes in effect as of October 1, 2026.
Subtitle 1
Md. Code Ann., Fin. Inst. § 10-101 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
“Association” means a corporation or mutual association that is chartered under the laws of this State as a savings and loan association.
(c)
“Board” means the Board of Directors of the State of Maryland Deposit Insurance Fund Corporation.
(d)
“Division Director” means the Director of the Division of Savings and Loan Associations.
(e)
“Federal insurance” means insurance provided by the Federal Savings and Loan Insurance Corporation.
(f)
“Fund” means the State of Maryland Deposit Insurance Fund Corporation.
(g)
“Fund Director” means the Director of the State of Maryland Deposit Insurance Fund Corporation.
(h)
“Insured institution” means:
(1)
A national banking association, a federal savings bank, or a banking institution incorporated as a State bank, trust company, savings bank, or other similar institution, whether under the laws of this or any other state, the deposits of which are insured by the Federal Deposit Insurance Corporation; or
(2)
A federal savings and loan association, a federal savings bank, a savings and loan association, a building and loan association, or a similar institution incorporated under the laws of this or any other state, the deposits of which are insured by the Federal Savings and Loan Insurance Corporation.
(i)
“Major association” means an association with total assets of $40,000,000 or more.
(j)
“Member association” means an association that is a member of the State of Maryland Deposit Insurance Fund Corporation.
(k)
“Savings account” means a savings share account, a savings deposit account, or any other deposit in an association.
Md. Code Ann., Fin. Inst. § 10-102 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–102LinkCopy Citation
There is a State of Maryland Deposit Insurance Fund Corporation in the Maryland Department of Labor.
Md. Code Ann., Fin. Inst. § 10-103 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–103LinkCopy Citation
(a)
The Fund Director is appointed by the Governor.
(b)
The Fund Director serves at the pleasure of the Secretary of Labor.
(c)
For a period of 2 years after termination of employment with the Fund, if the Fund Director is employed by a savings and loan association that is insured by the Fund, or becomes a director, officer, attorney, or agent of a savings and loan association that is insured by the Fund, that individual may not:
(1)
Represent, formally or informally, the association in any judicial, administrative, or other proceeding in which:
(i)
The Fund is a party; and
(ii)
The former Fund Director substantially participated;
(2)
Participate in any application submitted to the Fund for the Division’s approval; or
(3)
Attempt to influence, or make any oral or written communication, on behalf of the association in any matter before the Fund relating to the association in which the individual participated personally and substantially as Fund Director.
(d)
All of the corporate powers of the Fund shall be exercised by the Fund Director.
(e)
(1)
The Board consists of 11 members.
(2)
Of the Board members:
(i)
3 shall be elected by the member associations, subject to the approval of the Secretary of Labor; and
(ii)
8 shall be appointed by the Governor.
(3)
(i)
From among its members, the Board shall elect a chairman.
(ii)
The Board may appoint officers as it considers advisable.
(4)
No officer or director of the Fund, whether appointed or elected, shall be personally liable on any contract legally entered into on behalf of the Fund unless the contract, by its terms, expressly obligates that officer or director.
Md. Code Ann., Fin. Inst. § 10-103.1 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–103.1LinkCopy Citation
(a)
The function of the Board is advisory.
(b)
The Board shall give the Fund Director sound and impartial advice on:
(1)
The approval or disapproval of applications by a member association;
(2)
The administration of the State of Maryland Deposit Insurance Fund;
(3)
Protection of the interest of the general public and of depositors in member associations; and
(4)
Any other matter concerning the business of member associations.
(c)
If the Fund Director does not follow the advice of the Board, the Fund Director shall send to the Board and the Secretary a written statement of the reason for the action.
Md. Code Ann., Fin. Inst. § 10-104 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–104LinkCopy Citation
(a)
The Fund Director may employ a staff in accordance with the State budget. The Fund Director and staff of the Fund are entitled to the salaries provided in the State budget. These salaries are not subject to the authority of the Secretary of Budget and Management.
(b)
Technical and professional employees are special appointments in the State Personnel Management System.
Md. Code Ann., Fin. Inst. § 10-105 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–105LinkCopy Citation
The Fund Director exercises powers and performs duties subject to the authority of the Secretary of Labor.
Md. Code Ann., Fin. Inst. § 10-106 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–106LinkCopy Citation
The Fund Director shall adopt an official seal. A description and impression of the seal shall be filed with the Secretary of State.
Md. Code Ann., Fin. Inst. § 10-107 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–107LinkCopy Citation
The Fund Director shall devote full time to the duties of the Fund.
Md. Code Ann., Fin. Inst. § 10-108 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–108LinkCopy Citation
(a)
The Fund Director may not:
(1)
Be an officer or director of any State or federal savings and loan association; or
(2)
Engage in any other business relating to financial institutions.
(b)
(1)
The Fund Director may not own stock or be a depositor in any member association.
(2)
The employees of the Fund may not own stock in any member association.
(c)
Any person who violates any provision of this section is subject to dismissal.
Md. Code Ann., Fin. Inst. § 10-109 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–109LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, the Fund Director and employees of the Fund may not:
(1)
Become indebted to any member association; or
(2)
Engage or be interested in the sale of securities of or in the negotiation of loans for others to or with any member association.
(b)
This section does not apply to a loan that a member association makes to a depositor if the loan is less than the amount of the deposit.
(c)
Any person who violates any provision of this section is subject to dismissal.
Md. Code Ann., Fin. Inst. § 10-110 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–110LinkCopy Citation
(a)
(1)
(i)
The money of the State of Maryland Deposit Insurance Fund Corporation shall be maintained in a special nonlapsing fund, to be called the “State of Maryland Deposit Insurance Fund”.
(ii)
In addition to the powers expressly provided in this title, the Fund shall have, and through the Fund Director may exercise to the extent of the money in and available to the Fund, all the corporate powers granted Maryland corporations under the Maryland General Corporation Law.
(2)
The Fund Director shall administer the State of Maryland Deposit Insurance Fund for the purposes of:
(i)
Insuring the savings accounts of member associations;
(ii)
Purchasing capital instruments, including net worth certificates, issued by a member association to enable that member association to qualify for federal insurance;
(iii)
Reimbursing savings account holders for loss incurred upon liquidation of a member association, up to the amount of insurance on any savings account;
(iv)
Providing funds for liquidity to or issuing obligations against the Fund for, or acquiring securities of or from a member association, affiliate, or acquiring entity in an emergency as determined by the Fund Director or to facilitate an acquisition, consolidation, merger, or transfer of assets and obligations;
(v)
Making capital contributions to member associations or entities acquiring, consolidating, or merging with, or acquiring assets and assuming obligations of, member associations, if the Fund Director determines that:
(1)
The amount of the capital contribution is substantially less than the cost that the Fund would incur if the member association were liquidated, including the cost of reimbursing each savings account holder in the insured amount of each savings account holder’s deposit in the liquidated member association; and
(2)
The making of the capital contribution is necessary to facilitate the acquisition, consolidation, or mergers or transfers of assets and obligations;
(vi)
Paying to a receiver of any member association in receivership under § 9–708 of this article at the time of final distribution of the assets of the member association a sum equal to the amount that the insurance liability of the Fund has been reduced by reason of withdrawals made during the pendency of a conservatorship or receivership of the member association under any form of hardship withdrawal plan or partial distribution of assets approved by the court having jurisdiction over the receivership of the member association; and
(vii)
Making payments to any insured institution that assumes savings deposit or share account liabilities of a savings and loan association in receivership in an amount up to the total amount of the liabilities assumed and with respect to any specific deposit or share account not in excess of the amount of insurance on the deposit or share account, and agreeing to indemnify any insured institution that assumes these liabilities against any further liabilities to the extent deemed appropriate by the Fund Director but not to exceed the assets of the Fund.
(3)
(i)
Notwithstanding any other provision in this section, the Fund Director shall notify the Legislative Policy Committee of any proposed action by the Fund Director regarding the making of a capital contribution under paragraph (2)(v) of this subsection or the making of a payment, or agreeing to an indemnification under paragraph (2)(vii) of this subsection at least 21 days before the action regarding the capital contribution, payment, or agreement to indemnify is taken.
(ii)
The Legislative Policy Committee shall assign the proposed action by the Fund Director regarding the making of a capital contribution, payment, or agreement to indemnify for review by the appropriate standing committees.
(4)
Any agreement specifying the terms and conditions of a capital contribution under this section shall retain all claims that the Fund may have against officers, directors, employees, or agents of any acquired savings and loan association. The Fund may condition the exercise of those claims only to the extent deemed necessary for the protection of the public interest and welfare and may provide for an indemnification for reasonable expenses.
(b)
The amount of loss to be protected against for each depositor may not exceed the limit established from time to time by the rules and regulations of the Fund. This limit may not exceed the amount of federal insurance.
Md. Code Ann., Fin. Inst. § 10-110.1 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–110.1LinkCopy Citation
(a)
Upon final liquidation of a member association, the Fund Director shall:
(1)
Subject to subsection (b) of this section, determine the amount of insurable loss in the manner established by the rules and regulations of the Fund; and
(2)
Make provision for the payment or assumption of any insurable loss to each depositor less any payments made to, or accounts made available to, a depositor under subsection (c) of this section.
(b)
The determination of insurable loss under subsection (a)(1) of this section shall occur no later than 4 years from the date a member association is placed in receivership.
(c)
Subject to any other conditions established under law, if the Fund Director is reasonably satisfied that an insurable loss will be incurred upon final liquidation, in order to facilitate the payment of deposit insurance to depositors of a member association and to reasonably reduce the administrative costs of a liquidation, including demands on any hardship withdrawal plan, the Fund may, either upon final liquidation or earlier, and either from available moneys in the Fund or from any other State funds advanced to the Fund for that purpose:
(1)
Make a cash payment or payments or issue an obligation under a contract with one or more insured institutions with respect to the making available of insured accounts in an amount equal to all or any portion of the depositors’ savings accounts to any or all of the depositors of a member association in receivership;
(2)
Make a cash payment or payments, in an amount equal to all or any portion of the depositors’ savings accounts, to any or all of the depositors of a member association in receivership; or
(3)
Both.
(d)
Upon making a cash payment pursuant to a contract under subsection (c)(1) of this section or directly to a depositor under subsection (c)(2) of this section, or otherwise in satisfaction of its insurance obligation with respect to any depositor, the Fund shall be subrogated to all rights of the depositor, including its rights against the assets of the member association, its shareholders, directors, or officers, to the extent of the payment.
(e)
In proving its entitlement as a subrogee in any action, the Fund need only show proof of:
(1)
Reimbursement of a savings account holder, in part or in full, under this title; or
(2)
The making of payments or a capital contribution or the issuance of its obligations to an entity that assumes savings deposit or share account liabilities of a member association.
Md. Code Ann., Fin. Inst. § 10-110.2 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–110.2LinkCopy Citation
(a)
Any moneys advanced by the State to the Fund from general or special funds or from the proceeds of general obligation bonds shall be maintained in a separate account and may not be subject to attachment or any other judicial process by any person.
(b)
Any moneys recovered by the Fund as insurer, subrogee, conservator, or receiver, and not required for the purposes of the Fund under this title or for the purposes of the Fund as a conservator or receiver, shall be distributed to the General Fund of the State.
Md. Code Ann., Fin. Inst. § 10-111 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–111LinkCopy Citation
(a)
(1)
Any association or the incorporators of a proposed association may apply to the Fund Director to become a member association.
(2)
The Fund Director shall refer each application received to the Division Director for certification of insurability.
(b)
If the Division Director approves the financial affairs, solvency, management, and board of directors of an association or proposed association for insurance of savings accounts, the Division Director shall so certify to the Fund Director.
Md. Code Ann., Fin. Inst. § 10-112 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–112LinkCopy Citation
(a)
An association becomes a member when its application is approved by the Fund Director.
(b)
Subject to the terms and conditions adopted by the Fund Director, a member association may withdraw at any time from the Fund and have returned all or part of any capital advanced to the State of Maryland Savings-Share Insurance Corporation and all or part of any capital deposit required for membership in the Fund. All moneys and other assets of the former Maryland Savings-Share Insurance Corporation Central Reserve Fund shall continue to be segregated and maintained by the Fund to provide liquidity and are not subject to any insurance claim.
(c)
The net earnings of the Fund shall be accumulated for the benefit of the State and may not be returned to any member association.
Md. Code Ann., Fin. Inst. § 10-113 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–113LinkCopy Citation
(a)
The Fund Director shall adopt rules and regulations to carry out the provisions of this title.
(b)
(1)
Except as provided in subsection (c) of this section, the Fund Director may adopt rules and regulations providing for the payment of nonrefundable premiums instead of or in addition to capital deposits required for membership in the Fund and may issue instruments evidencing the interests of members in the Fund.
(2)
Except as provided in subsection (c) of this section, the total of premiums and capital deposits imposed on a member association may not be less than the comparable premiums, assessments, and capital deposits imposed for federal insurance.
(c)
If a member association withdraws from the Fund before the end of a period for which the association has been assessed or has paid an advance premium, the association shall receive a prorated credit or refund in an amount equal to the product of the premium paid or assessed multiplied by a fraction:
(1)
The numerator of which is the number of days remaining in the period after the association’s withdrawal; and
(2)
The denominator of which is the total number of days in the period.
Md. Code Ann., Fin. Inst. § 10-114 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–114LinkCopy Citation
Section 9-504 of this article does not prevent the Division Director and the Fund Director from exchanging information about an association.
Md. Code Ann., Fin. Inst. § 10-115 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–115LinkCopy Citation
The Fund is not subject to the Insurance Article.
Md. Code Ann., Fin. Inst. § 10-116 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–116LinkCopy Citation
It is the policy of this State that funds will be appropriated to the Fund to the extent necessary to protect holders of savings accounts in member associations, and to enable the Fund to meet its obligations under a hardship withdrawal plan or partial distribution of assets.
Md. Code Ann., Fin. Inst. § 10-117 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–117LinkCopy Citation
(a)
A major association is not eligible for new or continued membership in the Fund on or after June 1, 1985, unless it qualifies under subsection (b) of this section.
(b)
A major association may remain a member of the Fund only under the following circumstances:
(1)
If the major association has applied for federal insurance on or before June 1, 1985, it may remain a member:
(i)
For a period after June 1, 1985, of not more than 7 months, as determined by the Fund Director, if the Fund Director determines that there is a substantial likelihood that the major association will qualify for federal insurance; and
(ii)
For an extended period of not more than 3 months after its application for federal insurance has been denied, under terms and conditions as prescribed by the Fund Director, if the Fund Director determines that the interest of the savings account holders will not be jeopardized;
(2)
Whether or not the major association has applied for federal insurance, it may remain a member for a period after June 1, 1985, of not more than 1 year, as determined by the Fund Director, if it is owned or controlled, directly or indirectly, by an institution that is insured by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation and if that institution:
(i)
Guarantees the savings accounts of the major association; or
(ii)
Has entered into an agreement to acquire or merge with the major association; or
(3)
If the association was not a major association on the date it became a member of the Fund but later becomes a major association, for a period of not more than 1 year, as determined by the Director, from the date it became a major association.
(c)
(1)
If, at any time, the Fund Director determines that an association is being operated in an unsafe and unsound manner, or that there is not a substantial likelihood that a major association will qualify for federal insurance and that it is in the public interest, the Fund Director may exercise all of the powers of the Board of Savings and Loan Commissioners under Title 9, Subtitle 7 of this article to institute proceedings for the appointment of a conservator or a receiver.
(2)
Notwithstanding subsection (a) of this section, if proceedings have been instituted under this subsection, the association shall remain a member of the Fund until conclusion of the proceedings.
(3)
Notwithstanding subsection (a) of this section, a savings and loan association, the savings accounts of which are insured by the Maryland Savings-Share Insurance Corporation on May 16, 1985, that is a subsidiary of a corporation that owns another savings and loan association incorporated in another state, may continue to be insured by the Fund until July 1, 1987.
Md. Code Ann., Fin. Inst. § 10-118 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–118LinkCopy Citation
(a)
(1)
An association that is not a major association and had total assets of at least $15,000,000 but less than $40,000,000 as of May 18, 1985, is not eligible for new or continued membership in the Fund on or after July 1, 1987.
(2)
An association that is not a major association and has total assets of less than $15,000,000 or had total assets of less than $15,000,000 as of May 18, 1985, is not eligible for new or continued membership in the Fund on or after July 1, 1989.
(b)
Notwithstanding subsection (a)(1) of this section, an association is eligible for continued membership in the Fund beyond its scheduled date of termination, but in no event beyond October 30, 1987, if the Fund Director and the Secretary of Labor find:
(1)
The association has made a good faith effort to obtain insurance from the Federal Savings and Loan Insurance Corporation or other federal agency;
(2)
There is a substantial likelihood that the association will qualify for federal insurance;
(3)
The failure to obtain federal insurance is not attributable to unjustified delay on the part of the association; and
(4)
The interest of the savings account holders will not be jeopardized.
(c)
Notwithstanding subsection (a) of this section, if a proceeding has been instituted under Title 9, Subtitle 7 of this article, the association shall remain a member of the Fund until conclusion of the proceedings.
Md. Code Ann., Fin. Inst. § 10-119 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–119LinkCopy Citation
(a)
Any person who knowingly submits false information to the Fund is guilty of a misdemeanor.
(b)
A person who violates the provisions of subsection (a) of this section is subject to a fine of not more than $5,000, or imprisonment for not more than 5 years, or both.
Md. Code Ann., Fin. Inst. § 10-120 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–120LinkCopy Citation
(a)
In addition to any other remedies available at law or equity, the Fund is vested with all claims and rights of the former Maryland Savings–Share Insurance Corporation against any person.
(b)
Notwithstanding any other provision of law, in any action of the Fund as insurer, subrogee, conservator, or receiver against a shareholder, director, officer, employee, agent, or other person contributing to a loss at a member association or to enforce the terms of a net worth certificate or similar obligation:
(1)
A judgment obtained by the Fund shall have priority over any other judgment lien on a defendant’s real or personal property without need for further perfection or execution thereon;
(2)
All attorneys’ fees, costs, and expenses of the Fund for the litigation shall be assessed as part of any judgment in favor of the Fund; and
(3)
All money recovered by the Fund as insurer or subrogee shall be first applied to repay any monetary advance by the State to the Fund, including any and all fees, costs, and expenses, to further the purposes of this title. Money so recovered shall be placed in a separate account and shall be transferred as specified under § 10–110.2 of this subtitle. The separate account is not subject to attachment or other judicial process by any person.
(c)
All rights, claims, and liabilities of the Fund accrue to any successor entity and, if a successor entity is not created by law, to the Maryland Department of Labor.
Md. Code Ann., Fin. Inst. § 10-121 (2026)
Title 10. State of Maryland Deposit Insurance Fund Corporation
Subtitle 1
§ 10–121LinkCopy Citation
The Fund shall have the immunity from liability described under § 5-520 of the Courts and Judicial Proceedings Article.