Title 4. Banking Institutions -- Savings Banks — Subtitle 3. Guaranty Fund; Deposits
Statutes in effect as of October 1, 2026.
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.