Financial Institutions (GFI) — Title 4. Banking Institutions -- Savings Banks
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions
Md. Code Ann., Fin. Inst. § 4-101 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 1. Definitions
§ 4–101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
“Mutual holding company” means the corporation which holds more than 50% of the stock of a subsidiary savings bank pursuant to a reorganization under Subtitle 8 of this title.
(c)
(1)
“Savings bank” means an institution that:
(i)
Is incorporated under the laws of this State as a savings bank; and
(ii)
Engages only in the business of savings banking.
(2)
The term “savings bank” includes a subsidiary savings bank for the purpose of applying the provisions of this article.
(d)
“Subsidiary savings bank” means an institution that:
(1)
Is incorporated under the laws of this State as a subsidiary savings bank, all of the stock of which is owned by a mutual holding company;
(2)
Engages only in the business of savings banking;
(3)
Is a member of the Federal Deposit Insurance Corporation; and
(4)
Is organized to receive assets and liabilities of a mutual holding company in accordance with this subtitle and Subtitle 9 of this title.
Subtitle 2. Formation and Powers
Md. Code Ann., Fin. Inst. § 4-201 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–201LinkCopy Citation
Three or more adult individuals, each of whom is a citizen of the United States, and at least one of whom is a citizen of this State, may act as incorporators to form a savings bank under this subtitle.
Md. Code Ann., Fin. Inst. § 4-202 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–202LinkCopy Citation
(a)
The incorporators shall sign and acknowledge two copies of articles of incorporation.
(b)
The articles of incorporation shall include:
(1)
The name and address of each incorporator;
(2)
A statement that:
(i)
Each incorporator is at least 18 years old;
(ii)
Each incorporator is a citizen of the United States; and
(iii)
At least one of the incorporators is a citizen of this State;
(3)
A statement that the incorporators are associating to form a savings bank under this subtitle;
(4)
The name of the savings bank, which may not be similar in any material respect to the name of any other bank, savings bank, or trust company in this State;
(5)
The municipal area and county where the principal banking office of the savings bank is to be located;
(6)
The name and residence address of each member; and
(7)
The number of directors and the names and residence addresses of those who will serve until their successors are elected and qualify.
Md. Code Ann., Fin. Inst. § 4-203 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–203LinkCopy Citation
(a)
The incorporators shall:
(1)
File with the Commissioner for examination the two copies of the articles of incorporation; and
(2)
Pay to the Commissioner an examination fee of $1,500.
(b)
The Commissioner shall investigate and determine if:
(1)
The articles are framed in accordance with law;
(2)
The character, responsibility, and general fitness of the incorporators and directors named in the articles command confidence and warrant belief that the business of the proposed savings bank will be conducted honestly and efficiently, in accordance with the intent of this article; and
(3)
Allowing the proposed savings bank to engage in business:
(i)
Will promote public convenience and advantage; and
(ii)
Is expedient and desirable.
(c)
After the investigation, the Commissioner may require any change in the articles of incorporation that the Commissioner considers necessary.
(d)
(1)
Within 6 months after the articles are filed for examination, the Commissioner shall sign, date, and endorse each copy as “approved” or “refused”.
(2)
If formation of the savings bank is refused, the Commissioner shall return one of the endorsed copies of the articles to the incorporators.
(3)
If formation of the savings bank is approved, the Commissioner shall:
(i)
Return one of the endorsed copies of the articles to the incorporators; and
(ii)
Keep and record one of the endorsed copies.
Md. Code Ann., Fin. Inst. § 4-204 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–204LinkCopy Citation
(a)
If the Commissioner approves the articles of incorporation, the incorporators shall file for record one of the endorsed copies of the articles with the State Department of Assessments and Taxation.
(b)
Articles of incorporation that are filed for record are not effective unless the Commissioner has endorsed the articles as approved.
Md. Code Ann., Fin. Inst. § 4-205 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–205LinkCopy Citation
(a)
When articles of incorporation are filed for record in accordance with § 4-204 of this subtitle, the savings bank becomes a corporation.
(b)
Notwithstanding any charter provision or provision of law, each savings bank has the right to perpetual existence until forfeiture.
Md. Code Ann., Fin. Inst. § 4-206 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–206LinkCopy Citation
(a)
Except as otherwise provided in this article, a savings bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law.
(b)
In addition to the powers set forth elsewhere in this article, a savings bank may:
(1)
Receive deposits of money from:
(i)
Any person;
(ii)
The federal government or its agencies; and
(iii)
Any state or its political subdivisions;
(2)
Pledge collateral to secure the deposits of:
(i)
The federal government or its agencies; or
(ii)
Any state or its political subdivisions;
(3)
On good security:
(i)
Invest deposits; and
(ii)
Make loans from deposits;
(4)
Subject to § 4-603 of this title:
(i)
Borrow money; and
(ii)
Pledge its assets to secure the debt;
(5)
Rent its vaults or safe-deposit boxes and, in accordance with the rental agreement, permit deposits of property;
(6)
Subject to § 5-503 of this article, buy, hold, and convey real property;
(7)
Subject to § 4-604 of this title, act as trustee under:
(i)
The federal Self-Employed Individuals Tax Retirement Act of 1962; or
(ii)
The federal Employee Retirement Income Security Act of 1974;
(8)
With the prior approval of the Commissioner, exercise the powers granted under § 3-207 of this article to a trust company; and
(9)
Exercise all of the powers usual in carrying on a business of savings banking.
Md. Code Ann., Fin. Inst. § 4-207 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–207LinkCopy Citation
A savings bank may not do business until it receives from the Commissioner a certificate of authority to do business.
Md. Code Ann., Fin. Inst. § 4-208 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–208LinkCopy Citation
(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.
Md. Code Ann., Fin. Inst. § 4-209 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–209LinkCopy Citation
(a)
Payment to the initial guaranty fund shall be:
(1)
Made in money; and
(2)
Evidenced by transferable deferred payment certificates.
(b)
The approval of the Commissioner is required as to:
(1)
The form of the transferable deferred payment certificates;
(2)
The rate of interest that the holder of a certificate will be entitled to receive; and
(3)
The terms under which and the pro rata installments by which the holder of a certificate will be repaid.
Md. Code Ann., Fin. Inst. § 4-210 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 2. Formation and Powers
§ 4–210LinkCopy Citation
(a)
Any savings bank may amend its charter in any manner not inconsistent with law, as provided in this section.
(b)
A proposed amendment shall be approved at a meeting called for that purpose by:
(1)
The affirmative vote in person or by proxy of two thirds of the members; or
(2)
If there are no members, the affirmative vote of two thirds of the board of directors.
(c)
After an amendment is approved by the members or the directors:
(1)
The president of the savings bank and either its cashier or treasurer shall certify the amendment; and
(2)
The amendment shall be signed, filed with the Commissioner for examination, and, if approved by the Commissioner, filed for record as required for articles of incorporation.
(d)
On filing the amendment for examination, the savings bank shall pay to the Commissioner an examination fee of $20.
Subtitle 3. Guaranty Fund; Deposits
Md. Code Ann., Fin. Inst. § 4-301 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 3. Guaranty Fund; Deposits
§ 4–301LinkCopy Citation
(a)
If a savings bank has a guaranty fund that is less than 5 percent of its total deposits, the savings bank:
(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 Commissioner approves the payment and the rate of interest.
(b)
If a savings bank has a guaranty fund that is less than 5 percent of its total deposits, the savings bank shall add to its initial guaranty fund, at the end of each fiscal year, at least 10 percent of its net earnings, calculated before interest on the transferable deferred payment certificates.
Md. Code Ann., Fin. Inst. § 4-302 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 3. Guaranty Fund; Deposits
§ 4–302LinkCopy Citation
(a)
Except as provided in this section, a savings bank may not reduce its guaranty fund.
(b)
If the 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 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 Commissioner determines that a savings bank does not have a guaranty fund equal to 5 percent of its total deposits, the 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 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.
Md. Code Ann., Fin. Inst. § 4-303 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 3. Guaranty Fund; Deposits
§ 4–303LinkCopy Citation
(a)
A savings bank may pay interest on its deposits only from its profits, after deducting expenses for management, losses, necessary credits to premium accounts, taxes, and required additions to the guaranty fund.
(b)
In determining its profits, a savings bank is not required, as to any bond that it buys or holds, to charge off from the premium of the bond more than an amount proportionate to the life of the bond.
Subtitle 4. Members
Md. Code Ann., Fin. Inst. § 4-401 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 4. Members
§ 4–401LinkCopy Citation
Unless organized as a subsidiary savings bank, as defined in this title, a savings bank is a mutual association and may not have any capital stock.
Md. Code Ann., Fin. Inst. § 4-402 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 4. Members
§ 4–402LinkCopy Citation
(a)
The bylaws of a savings bank shall provide for annual meetings of the members to:
(1)
Elect directors;
(2)
Elect members, unless the charter of the savings bank provides for a different method of electing members; and
(3)
Transact other business.
(b)
The bylaws of a subsidiary savings bank shall provide for annual meetings of the stockholders to:
(1)
Elect directors; and
(2)
Transact other business.
Subtitle 5. Directors
Md. Code Ann., Fin. Inst. § 4-501 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–501LinkCopy Citation
The business and affairs of a savings bank shall be managed under the direction of a board of directors.
Md. Code Ann., Fin. Inst. § 4-502 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–502LinkCopy Citation
Each savings bank shall have at least 5 and not more than 30 directors, as its charter or bylaws provide.
Md. Code Ann., Fin. Inst. § 4-503 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–503LinkCopy Citation
Each director of a savings bank shall be a member of the savings bank.
Md. Code Ann., Fin. Inst. § 4-504 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–504LinkCopy Citation
Each director of a savings bank shall take an oath:
(1)
To perform diligently and honestly the duties of the office; and
(2)
Not to violate knowingly or permit knowingly a violation of any law that relates to the savings bank.
Md. Code Ann., Fin. Inst. § 4-505 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–505LinkCopy Citation
(a)
Until successors are elected and qualify, the board of directors of a savings bank consists of the individuals named as directors in the articles of incorporation.
(b)
(1)
Except as provided in paragraph (2) of this subsection, at each annual meeting of the members of a savings bank or the stockholders of a subsidiary savings bank, the members or stockholders shall elect directors to hold office until the next annual meeting and until their successors are elected and qualify.
(2)
(i)
Subject to subparagraphs (ii) and (iii) of this paragraph, if the directors are divided into classes, the term of office may be provided in the bylaws.
(ii)
The term of office of a director may not be longer than 5 years or, in the case of an initial or substitute director, shorter than the period between annual meetings.
(iii)
The term of office of at least one class of directors shall expire each year.
Md. Code Ann., Fin. Inst. § 4-507 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–507LinkCopy Citation
(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.
(b)
(1)
Any director who fails to attend meetings of the board of directors as required by this section is disqualified automatically from serving as director for a succeeding term.
(2)
The Commissioner may waive the disqualification of a director if the director shows to the Commissioner good cause for the failure to attend the meetings.
Md. Code Ann., Fin. Inst. § 4-508 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–508LinkCopy Citation
The board of directors of a savings bank may fill any vacancy on the board by electing an individual to serve until the next annual meeting of the members or the stockholders of a subsidiary bank and until a successor is elected and qualifies.
Md. Code Ann., Fin. Inst. § 4-509 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 5. Directors
§ 4–509LinkCopy Citation
Unless the charter or bylaws of a savings bank provide for a greater number, a majority of the directors then serving is a quorum.
Subtitle 6. Miscellaneous Regulations
Md. Code Ann., Fin. Inst. § 4-601 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 6. Miscellaneous Regulations
§ 4–601LinkCopy Citation
(a)
A depositor of a savings bank may withdraw the deposit as the bylaws of the savings bank permit.
(b)
The bylaws of a savings bank:
(1)
May require a depositor to give notice of an intent to withdraw any part of a deposit; and
(2)
May not require more than 90 days’ notice.
Md. Code Ann., Fin. Inst. § 4-603 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 6. Miscellaneous Regulations
§ 4–603LinkCopy Citation
(a)
(1)
Unless a savings bank has the prior approval of the Commissioner, the total amount of all of its outstanding debts, other than those incurred for purposes of repaying its depositors, may not exceed 5 percent of its deposits.
(2)
When the directors of a savings bank authorize it to borrow money for which approval is required, the savings bank immediately shall send a copy of the board’s resolution to the Commissioner.
(b)
A savings bank may not borrow money for periods that total more than:
(1)
1 year; and
(2)
Any additional renewal period that the Commissioner approves in writing for payment of an unpaid balance.
Md. Code Ann., Fin. Inst. § 4-604 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 6. Miscellaneous Regulations
§ 4–604LinkCopy Citation
(a)
In this section, “federal act” means:
(1)
The federal Self-Employed Individuals Tax Retirement Act of 1962; or
(2)
The federal Employee Retirement Income Security Act of 1974.
(b)
A savings bank may act as trustee of a plan under either federal act, as provided in this section.
(c)
A savings bank may:
(1)
Accept a trust under a plan that:
(i)
Constitutes a qualified plan under a federal act and the rules and regulations adopted under it; and
(ii)
Requires the exclusive investment of trust funds in deposits of a mutual savings institution; and
(2)
Continue as trustee of a plan that is determined not to be or ceases to be a qualified plan, if, when the savings bank accepted the trust, the savings bank judged the plan to be a qualified plan.
(d)
A savings bank that is acting as trustee of a plan under a federal act:
(1)
May integrate the trust funds with its other deposits; and
(2)
Shall keep appropriate, detailed records of all transactions in which it engages as trustee.
Subtitle 7. Extraordinary Actions
Md. Code Ann., Fin. Inst. § 4-701 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 7. Extraordinary Actions
§ 4–701LinkCopy Citation
(a)
In this section, “transfer assets”, “transfer its assets”, or “transfer of assets” means to sell, lease, exchange, or otherwise transfer all or substantially all of the property and assets of a savings bank.
(b)
(1)
A savings bank may consolidate with, merge into, or transfer its assets to any banking institution in this State, any other bank in this State, or any State or federal savings and loan association in this State if the Commissioner gives written consent to the transaction.
(2)
A savings bank may have any banking institution in this State, any other bank in this State, or any State or federal savings and loan association in this State merge into the savings bank if the Commissioner gives written consent to the transaction.
(c)
The transaction shall be approved at a meeting called for that purpose, by the affirmative vote of:
(1)
Two thirds of the members of the savings bank, voting in person or by proxy; or
(2)
If there are no members, the board of directors of the savings bank.
(d)
An agreement that sets forth the terms and conditions of the proposed transaction shall be:
(1)
Signed and acknowledged by the president and treasurer of each party to the transaction; and
(2)
Filed with the Commissioner.
(e)
(1)
Except as provided in subsection (f) of this section, the Commissioner shall publish a notice of the filing of the agreement.
(2)
The notice shall be published in the Maryland Register as provided in the State Documents Law.
(f)
Subject to confirmation by the Secretary of Labor, the Commissioner may approve an agreement without the notice in the Maryland Register if:
(1)
The financial condition or stability of one of the parties to the proposed transaction is such that a delay of the proposed transaction will cause an economic hardship to it; and
(2)
Approval of the agreement is in the public interest.
Md. Code Ann., Fin. Inst. § 4-701.1 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 7. Extraordinary Actions
§ 4–701.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Converting institution” means a federal mutual savings bank.
(3)
“Federal mutual savings bank” means an institution that:
(i)
Is incorporated under federal law as a savings bank; and
(ii)
Is a mutual association.
(b)
A converting institution that is located in this State may convert into a savings bank as provided by federal law and this section.
(c)
(1)
The converting institution shall meet the requirements of this title for the incorporation of a savings bank.
(2)
The procedures for incorporation may be modified as required by the difference between incorporation and conversion.
(3)
In accordance with regulations adopted by the Commissioner, any interested person may request that the Commissioner conduct a hearing regarding the conversion.
(d)
(1)
The board of directors of the converting institution shall sign, acknowledge, and file articles of incorporation.
(2)
The articles of incorporation shall state that the conversion has been approved by the members or board of directors in the manner required by subsection (e) of this section.
(e)
The conversion shall be approved at a meeting called for that purpose, by the affirmative vote of:
(1)
Two–thirds of the members of the converting institution, voting in person or by proxy; or
(2)
If there are no members, the board of directors of the converting institution.
(f)
The new savings bank resulting from the conversion:
(1)
Shall be considered the same business and corporate entity as the converting institution; and
(2)
Except as limited by this article or by its charter or bylaws, has all of the rights, powers, and duties of the converting institution.
(g)
The converting institution’s rights, franchises, and interests in any property become the property of the new savings bank, subject to the liabilities of the converting institution that exist at the time of the conversion.
(h)
Unless this construction would be unreasonable, any reference to the converting institution in any writing, whether executed or taking effect before or after the conversion, shall be interpreted as a reference to the new savings bank.
(i)
If a converting institution has assets or engages in business activities that do not conform to the law governing savings banks, the Commissioner may allow a reasonable time for the new savings bank to conform to that law.
Md. Code Ann., Fin. Inst. § 4-702 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 7. Extraordinary Actions
§ 4–702LinkCopy Citation
(a)
A savings bank may dissolve voluntarily as provided in this section.
(b)
A proposed voluntary dissolution shall be approved by:
(1)
The affirmative vote, in person or by proxy, of two thirds of the members; or
(2)
If there are no members, the unanimous vote of the board of directors.
(c)
(1)
After a proposed dissolution is approved, the board of directors of the savings bank shall give the following notices.
(2)
The board shall give written notice to the Commissioner of the impending dissolution. This notice shall be certified under the corporate seal of the savings bank by its president and by its treasurer.
(3)
The board also shall give notice to creditors of the savings bank to present for payment any claim against it. This notice shall be published once each week for 8 consecutive weeks in a newspaper published in the county where the savings bank has its principal banking office.
(d)
After publication of the required notice to creditors, the directors of a savings bank shall execute and file with the Commissioner a statement that the savings bank is dissolved.
Md. Code Ann., Fin. Inst. § 4-703 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 7. Extraordinary Actions
§ 4–703LinkCopy Citation
(a)
A savings bank may convert to a capital stock commercial bank with the approval of its members and the Commissioner.
(b)
The Commissioner shall adopt regulations to govern the conversion of savings banks to capital stock commercial banks.
Subtitle 8. Mutual Holding Companies
Md. Code Ann., Fin. Inst. § 4-801 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–801LinkCopy Citation
In this subtitle, “savings and loan association” means a savings and loan association organized under Title 9 of this article and insured by the Maryland Deposit Insurance Fund Corporation.
Md. Code Ann., Fin. Inst. § 4-802 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–802LinkCopy Citation
(a)
(1)
Notwithstanding any other provision of law, any savings bank may be reorganized in order to become a mutual holding company by submitting to the Commissioner an application for approval of reorganization.
(2)
A reorganization submitted for approval shall have been approved by the savings bank under the procedures described in § 4–701(c) of this title.
(b)
The application for approval of reorganization shall contain:
(1)
A brief statement summarizing a plan of reorganization;
(2)
3 copies of the proposed articles of incorporation of the subsidiary savings bank acknowledged by the incorporators of the subsidiary savings bank;
(3)
A statement that the plan of reorganization was advised, authorized, and approved by the savings bank in the manner and by the vote required by its charter and the laws of this State; and
(4)
A statement of the manner of approval.
(c)
The plan of reorganization shall provide that:
(1)
A subsidiary savings bank shall be incorporated pursuant to Subtitle 9 of this title;
(2)
The savings bank shall transfer a substantial part of its assets to the subsidiary savings bank and the subsidiary savings bank shall assume a substantial part of the savings bank’s liabilities, including all depository liabilities;
(3)
As a result of the reorganization of the savings bank into a mutual holding company, the mutual holding company shall hold more than 50% of the stock of the subsidiary savings bank; and
(4)
After transfer and assumption, persons with prior corresponding rights as depositors or creditors against a savings bank shall have the same rights with respect to the mutual holding company and the subsidiary savings bank.
(d)
The plan of reorganization:
(1)
May contain any other provision not inconsistent with law; and
(2)
Shall set forth the necessary corporate steps for the savings bank to reorganize into a mutual holding company, including:
(i)
All required charter amendments; and
(ii)
A description of the corporate management of the reorganized mutual holding company.
(e)
(1)
Except as provided in subsection (f) of this section, the Commissioner shall publish a notice of filing of the application for approval of the plan of reorganization.
(2)
The notice of filing of application shall be published in the Maryland Register as provided in the State Documents Law.
(f)
Subject to confirmation by the Secretary of Labor, the Commissioner may approve an application without publication of the notice of filing of application in the Maryland Register if:
(1)
The financial condition or stability of one of the parties to the proposed reorganization is such that a delay of the proposed reorganization will cause an economic hardship to the party; and
(2)
Approval of the application is in the public interest.
Md. Code Ann., Fin. Inst. § 4-803 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–803LinkCopy Citation
(a)
The savings bank shall:
(1)
File with the Commissioner for examination the application for approval of reorganization; and
(2)
At the time of filing of an application for approval of reorganization, pay to the Commissioner a fee of $1,500.
(b)
The Commissioner shall investigate the proposed articles of incorporation of the subsidiary savings bank and determine if:
(1)
The articles are framed in accordance with law;
(2)
The character, responsibility, and general fitness of the incorporators and directors named in the articles command confidence and warrant belief that the business of the proposed subsidiary savings bank will be conducted honestly and efficiently in accordance with the intent of this article; and
(3)
Allowing the proposed subsidiary savings bank to engage in business:
(i)
Will promote public convenience and advantage; and
(ii)
Is expedient and desirable.
(c)
After investigating the proposed articles of incorporation of the subsidiary savings bank, the Commissioner may require any change in the articles of incorporation that the Commissioner considers necessary.
(d)
As to the proposed articles of incorporation of the subsidiary savings bank:
(1)
Within 3 months after the application is filed for examination, the Commissioner shall sign, date, and endorse each copy of the articles of incorporation as “approved” or “refused”.
(2)
If formation of the subsidiary savings bank is refused, the Commissioner shall return one of the endorsed copies of the articles of incorporation to the incorporators.
(3)
If formation of the subsidiary savings bank is approved, the Commissioner shall:
(i)
Return one of the endorsed copies of the articles of incorporation to the incorporators; and
(ii)
Keep and record one of the endorsed copies.
(e)
Within 3 months after the application for approval of reorganization is filed for examination, the Commissioner shall approve or reject the application. The Commissioner may not approve the application unless the Commissioner determines:
(1)
That the plan of reorganization is:
(i)
Reasonably required to protect the welfare of the general economy of this State;
(ii)
Not detrimental to the public interest or the savings bank; and
(iii)
In compliance with the regulations and conditions that the Commissioner adopts;
(2)
That if the reorganization is pursuant to an acquisition by the mutual holding company of all the stock of a savings and loan association:
(i)
Exigent circumstances exist that make the acquisition necessary to maintain the viability or prevent the probable failure of the savings and loan association acquired; and
(ii)
The mutual holding company agrees to obtain federal insurance for the deposits of the acquired savings and loan association within the time limitation imposed by the Commissioner;
(3)
That immediately before the reorganization, the depositors of the savings bank are entitled to deposits in the subsidiary savings bank of like amounts, interest rates, and other terms, without interruption of interest;
(4)
That all deposits continue to be insured by the Federal Deposit Insurance Corporation up to the maximum amount provided by law; and
(5)
That the applicant has met all the requirements of this subtitle and Subtitle 9 of this title.
Md. Code Ann., Fin. Inst. § 4-804 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–804LinkCopy Citation
(a)
In connection with the reorganization of a savings bank into a mutual holding company pursuant to this subtitle and with the approval of the Commissioner, the mutual holding company may retain assets to the extent that they are not then required by the subsidiary savings bank to satisfy State or federal capital or reserve requirements.
(b)
After reorganization pursuant to this subtitle, a mutual holding company shall:
(1)
Continue to possess and may exercise all general corporate powers; and
(2)
Be subject to all limitations not inconsistent with this section, of a savings bank under the laws of this State.
(c)
A mutual holding company shall hold more than 50% of the stock of a subsidiary savings bank or savings and loan association acquired pursuant to this subtitle.
(d)
Without limiting any powers it may have under this section or any other laws of this State, a mutual holding company may acquire the assets or stock of a savings and loan association with the prior approval of the Commissioner pursuant to the determinations required under § 4-803(e)(2) of this subtitle.
(e)
A mutual holding company may not take deposits.
Md. Code Ann., Fin. Inst. § 4-805 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–805LinkCopy Citation
A mutual holding company shall be subject to the provisions of the federal Bank Holding Company Act of 1956, as amended, and all the provisions of this article governing bank holding companies.
Md. Code Ann., Fin. Inst. § 4-805.1 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–805.1LinkCopy Citation
A mutual holding company is a mutual association and may not have any capital stock.
Md. Code Ann., Fin. Inst. § 4-806 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–806LinkCopy Citation
The Commissioner may adopt regulations to carry out the provisions of this subtitle.
Md. Code Ann., Fin. Inst. § 4-807 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 8. Mutual Holding Companies
§ 4–807LinkCopy Citation
A mutual holding company shall be subject to the provisions of Subtitles 4, 5, and 7 of this title.
Subtitle 9. Subsidiary Savings Banks
Md. Code Ann., Fin. Inst. § 4-901 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–901LinkCopy Citation
Five or more adult individuals, each of whom is a resident of this State and a citizen of the United States, may act as incorporators to form a subsidiary savings bank under this subtitle.
Md. Code Ann., Fin. Inst. § 4-902 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–902LinkCopy Citation
(a)
The incorporators of a subsidiary savings bank shall sign and acknowledge 2 copies of the articles of incorporation.
(b)
The articles of incorporation shall include:
(1)
The name and address of each incorporator;
(2)
A statement that each incorporator is 18 years old or older, a resident of this State, and a citizen of the United States;
(3)
A statement that the incorporators are associated to form a subsidiary savings bank under this subtitle;
(4)
The name of the subsidiary savings bank, which may not be similar in any material respect to the name of any other bank or trust company in this State, except that the name of the subsidiary savings bank may be similar to the name of a savings bank reorganized pursuant to this title that is affiliated with the subsidiary savings bank;
(5)
The municipal area and county where the principal banking office of the subsidiary savings bank is to be located;
(6)
The number of directors and the names and residence addresses of those who will serve as directors until their successors are elected and qualify; and
(7)
A statement that more than 50% of the shares of capital stock issued shall be held by the mutual holding company.
(c)
The minimum capital requirements of a subsidiary savings bank shall be governed by §§ 3-209 and 3-211 of this article.
(d)
The articles of incorporation may include any other provision not inconsistent with law.
Md. Code Ann., Fin. Inst. § 4-903 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–903LinkCopy Citation
(a)
If the Commissioner approves the articles of incorporation of the subsidiary savings bank, the incorporators shall file for record with the State Department of Assessments and Taxation one endorsed copy of the articles of incorporation.
(b)
Unless the Commissioner has endorsed the articles of incorporation as approved, articles of incorporation that are filed for record may not be effective.
Md. Code Ann., Fin. Inst. § 4-904 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–904LinkCopy Citation
(a)
When the articles of incorporation are filed for recording in accordance with § 4–903 of this subtitle, the subsidiary savings bank becomes a corporation.
(b)
Notwithstanding any charter provision or provision of law, a subsidiary savings bank has the right to perpetual existence until forfeiture.
Md. Code Ann., Fin. Inst. § 4-905 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–905LinkCopy Citation
(a)
Except as otherwise provided in this article, a subsidiary savings bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law.
(b)
Except as otherwise provided in this article, a subsidiary savings bank may exercise all rights, powers, and privileges and shall be subject to all duties and obligations of a savings bank under the laws of this State.
(c)
Any reference to savings bank in any other law of this State shall be applicable to a subsidiary savings bank.
(d)
A subsidiary savings bank shall be subject to all the provisions of Title 3, Subtitle 3 of this article regarding its stock.
Md. Code Ann., Fin. Inst. § 4-906 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–906LinkCopy Citation
A subsidiary savings bank may not do business until:
(1)
The subsidiary savings bank receives from the Commissioner a certificate of authority to do business; and
(2)
The required capital stock and the required surplus are paid in full.
Md. Code Ann., Fin. Inst. § 4-907 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–907LinkCopy Citation
(a)
After its articles of incorporation are filed for record and its required capital stock and surplus are paid in full, the subsidiary savings bank shall give to the Commissioner notice that the subsidiary savings bank has complied with all of the applicable provisions of this subtitle.
(b)
The Commissioner shall examine the condition of the subsidiary savings bank to determine:
(1)
The name and residence of each director;
(2)
If the required capital stock and surplus are paid in full; and
(3)
If the subsidiary savings bank has complied with all other applicable provisions of this title.
(c)
If, after examination, it appears that the subsidiary savings bank lawfully is entitled to do business, the Commissioner shall issue the certificate of authority to do business.
(d)
(1)
If, after examination, it appears that the required capital stock and surplus have not been paid in full, the Commissioner may not issue the certificate of authority to do business.
(2)
If, after examination, the Commissioner has reason to believe that the stockholders formed the subsidiary savings bank for any purpose other than legitimate business under this article, the Commissioner, with the advice and consent of the Secretary of Labor, may withhold the certificate.
Md. Code Ann., Fin. Inst. § 4-908 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–908LinkCopy Citation
After providing for due or accrued expenses, losses, interest, and taxes, the board of directors of a subsidiary savings bank may declare a cash dividend only from the following:
(1)
Its undivided profits; or
(2)
With the approval of the Commissioner, its surplus in excess of 100 percent of its required capital stock.
Md. Code Ann., Fin. Inst. § 4-909 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–909LinkCopy Citation
The Commissioner may evaluate the assets of a subsidiary savings bank by a method that the Federal Deposit Insurance Corporation or any other appropriate federal authority adopts for the evaluation of such assets.
Md. Code Ann., Fin. Inst. § 4-910 (2026)
Title 4. Banking Institutions -- Savings Banks
Subtitle 9. Subsidiary Savings Banks
§ 4–910LinkCopy Citation
A subsidiary savings bank may dissolve in accordance with § 3-803 of this article and subject to any rights provided for in § 4-802(c)(4) of this title.