Title 4. Banking Institutions -- Savings Banks — Subtitle 2. Formation and Powers

The name and address of each incorporator;

A statement that:

A statement that the incorporators are associating to form a savings bank under this subtitle;

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;

The municipal area and county where the principal banking office of the savings bank is to be located;

The name and residence address of each member; and

The number of directors and the names and residence addresses of those who will serve until their successors are elected and qualify.

File with the Commissioner for examination the two copies of the articles of incorporation; and

Pay to the Commissioner an examination fee of $1,500.

The articles are framed in accordance with law;

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

Allowing the proposed savings bank to engage in business:

Within 6 months after the articles are filed for examination, the Commissioner shall sign, date, and endorse each copy as “approved” or “refused”.

If formation of the savings bank is refused, the Commissioner shall return one of the endorsed copies of the articles to the incorporators.

If formation of the savings bank is approved, the Commissioner shall:

Receive deposits of money from:

Pledge collateral to secure the deposits of:

On good security:

Subject to § 4-603 of this title:

Rent its vaults or safe-deposit boxes and, in accordance with the rental agreement, permit deposits of property;

Subject to § 5-503 of this article, buy, hold, and convey real property;

Subject to § 4-604 of this title, act as trustee under:

With the prior approval of the Commissioner, exercise the powers granted under § 3-207 of this article to a trust company; and

Exercise all of the powers usual in carrying on a business of savings banking.

The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and

Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent.

Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection.

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.

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:

Made in money; and

Evidenced by transferable deferred payment certificates.

The form of the transferable deferred payment certificates;

The rate of interest that the holder of a certificate will be entitled to receive; and

The terms under which and the pro rata installments by which the holder of a certificate will be repaid.

The affirmative vote in person or by proxy of two thirds of the members; or

If there are no members, the affirmative vote of two thirds of the board of directors.

The president of the savings bank and either its cashier or treasurer shall certify the amendment; and

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.