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.

The incorporators shall sign and acknowledge two copies of articles of incorporation. The articles of incorporation shall include: The name and address of each incorporator; A statement that: Each incorporator is at least 18 years old; Each incorporator is a citizen of the United States; and At least one of the incorporators is a citizen of this State; 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.

The incorporators shall: 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 Commissioner shall investigate and determine if: 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: Will promote public convenience and advantage; and Is expedient and desirable. After the investigation, the Commissioner may require any change in the articles of incorporation that the Commissioner considers necessary. 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: Return one of the endorsed copies of the articles to the incorporators; and Keep and record one of the endorsed copies.

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. Articles of incorporation that are filed for record are not effective unless the Commissioner has endorsed the articles as approved.

When articles of incorporation are filed for record in accordance with § 4-204 of this subtitle, the savings bank becomes a corporation. Notwithstanding any charter provision or provision of law, each savings bank has the right to perpetual existence until forfeiture.

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. In addition to the powers set forth elsewhere in this article, a savings bank may: Receive deposits of money from: Any person; The federal government or its agencies; and Any state or its political subdivisions; Pledge collateral to secure the deposits of: The federal government or its agencies; or Any state or its political subdivisions; On good security: Invest deposits; and Make loans from deposits; Subject to § 4-603 of this title: Borrow money; and Pledge its assets to secure the debt; 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: The federal Self-Employed Individuals Tax Retirement Act of 1962; or The federal Employee Retirement Income Security Act of 1974; 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.

A savings bank may not do business until it receives from the Commissioner a certificate of authority to do business.

Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least: 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: 5 percent of its total deposits; and The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch.

Payment to the initial guaranty fund shall be: Made in money; and Evidenced by transferable deferred payment certificates. The approval of the Commissioner is required as to: 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.

Any savings bank may amend its charter in any manner not inconsistent with law, as provided in this section. A proposed amendment shall be approved at a meeting called for that purpose by: 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. After an amendment is approved by the members or the 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. On filing the amendment for examination, the savings bank shall pay to the Commissioner an examination fee of $20.