Title 8. Savings and Loan Associations -- Board of Commissioners and Division — Subtitle 3. Division of Savings and Loan Associations
Statutes in effect as of October 1, 2026.
Md. Code Ann., Fin. Inst. § 8-301 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–301LinkCopy Citation
There is a Division of Savings and Loan Associations in the Maryland Department of Labor.
Md. Code Ann., Fin. Inst. § 8-302 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–302LinkCopy Citation
(a)
The Secretary of Labor shall appoint the Division Director with the approval of the Governor and the advice and consent of the Senate.
(b)
The Division Director serves at the pleasure of the Secretary.
(c)
The Division Director shall have experience in State or national regulation or management of financial organizations, which may include service as a bank or savings and loan association director or officer.
(d)
The Division Director is entitled to the salary provided in the State budget.
Md. Code Ann., Fin. Inst. § 8-303 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–303LinkCopy Citation
(a)
The Division Director shall adopt regulations necessary to accomplish the policies set forth in § 8–102 of this title.
(b)
Without limiting the authority conferred by subsection (a) of this section, the Division Director may adopt regulations consistent with the provisions of this title and Title 9 of this article with respect to:
(1)
Any powers conferred on the Division Director in this title and Title 9 of this article;
(2)
Reserve requirements;
(3)
Stock ownership and dividends;
(4)
Stock transfers (change of control);
(5)
Incorporators, controlling persons, directors, officers, employees, and agents of a savings and loan association;
(6)
Bylaws;
(7)
Related entities;
(8)
The structure of the office of the Division;
(9)
The operation, conduct, and management of savings and loan associations;
(10)
Withdrawable accounts, savings accounts and plans, and contracts for savings programs;
(11)
Loans and loan expenses, including underwriting procedures;
(12)
Investments;
(13)
Forms and definitions;
(14)
Types of financial records to be maintained by savings and loan associations;
(15)
Retention periods of various financial records of savings and loan associations;
(16)
Internal control procedures of savings and loan associations;
(17)
Chartering and branching;
(18)
Liquidations;
(19)
Mergers;
(20)
Conversions;
(21)
Reports which may be required by the Division Director;
(22)
Conflicts of interest;
(23)
Accounting rules;
(24)
Issuance of orders;
(25)
Removal of directors, officers, and employees;
(26)
Advertising; and
(27)
Enforcement remedies relating to limitations on interest rates on deposits.
(c)
Without limiting the authority conferred by subsection (a) of this section, directors and officers of savings and loan associations shall develop and implement, by December 31, 1989, written:
(1)
Real estate appraisal policies; and
(2)
Procedures pertaining to the hiring and performance of real estate appraisers.
(d)
The procedures required under subsection (c)(2) of this section shall set forth specific factors to be considered by the savings and loan association’s directors and officers, including but not limited to:
(1)
Whether the appraiser is licensed or certified under the Business Occupations and Professions Article; and
(2)
The real estate appraiser’s:
(i)
Professional education; and
(ii)
Experience in real estate appraising.
(e)
Real estate appraisal policies and procedures shall be submitted by the savings and loan associations to the Division Director for review and approval.
(f)
The regulations adopted by the Division Director may include reasonable requirements and limitations on the types and amounts of investments, the manner of raising capital, and the nature and amounts of reserves, irrespective of their effects on free economic competition.
(g)
If the Division Director believes that a savings and loan association or any of its controlling persons, directors, officers, agents, or employees has violated any provision of this title or Title 9 that relates to the association, the Division Director immediately shall report the violation to:
(1)
The Secretary of Labor;
(2)
The Governor; and
(3)
The Attorney General, who shall take the appropriate steps to institute an investigation or other appropriate action for the violation.
(h)
The Division Director may provide advisory opinions on conflicts of interest on request.
Md. Code Ann., Fin. Inst. § 8-305 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–305LinkCopy Citation
(a)
With the approval of the Secretary, the Division Director may appoint the staff provided in the State budget.
(b)
Except as provided in subsection (c) of this section or otherwise by law, the Division Director shall appoint and remove all personnel in accordance with the provisions of the State Personnel and Pensions Article.
(c)
The deputy director is in the management service of the State Personnel Management System.
Md. Code Ann., Fin. Inst. § 8-306 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–306LinkCopy Citation
Before taking office, the Division Director shall take the oath required by Article I, § 9 of the Maryland Constitution.
Md. Code Ann., Fin. Inst. § 8-307 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–307LinkCopy Citation
(a)
The Division Director shall devote full time to the duties of the office.
(b)
The Division Director and staff may not be officers, directors, employees, auditors, agents of, or attorneys for, nor retained in any manner by, nor have any ownership interest or deposit whatsoever in, any savings and loan association or related entity.
(c)
The Division Director, Division staff, and members of the immediate families of the Division Director and Division staff, as defined in § 5–101 of the General Provisions Article may not accept, directly or indirectly, any gift, gratuity, or remuneration of any type from any savings and loan association or related entity or from any director, officer, controlling person, employee, or agent of any savings and loan association or related entity.
(d)
(1)
The Division Director, Division staff, and members of the immediate families of the Division Director and Division staff as defined in § 5–101 of the General Provisions Article may not become indebted to any association or related entity that is subject to the jurisdiction of the Division Director.
(2)
Any person who violates any provision of this section is subject to forfeiture of that person’s office or employment in addition to any other penalty prescribed by law.
(e)
(1)
Subject to paragraph (2) of this subsection, nothing in this section may be construed to affect any contractual obligation, including a savings account, in existence before January 15, 1986.
(2)
(i)
All contractual obligations, including savings accounts, in existence before January 15, 1986, and the corresponding dollar amounts shall be fully disclosed to the Secretary of Labor.
(ii)
The Secretary of Labor shall file each disclosure with the State Ethics Commission.
(f)
For a period of 2 years after termination of employment with the Division of Savings and Loan Associations, if the Division Director or former deputy division director is employed by a Maryland savings and loan association or becomes a director, officer, attorney, or agent of a Maryland savings and loan association, that individual may not:
(1)
Represent, formally or informally, the association in any judicial, administrative, or other proceeding in which:
(i)
The Division of Savings and Loan Associations is a party; and
(ii)
The former Division Director or former deputy division director substantially participated;
(2)
Participate in any application submitted to the Division 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 Division relating to the association in which the individual participated personally and substantially as Division Director or former deputy division director.
Md. Code Ann., Fin. Inst. § 8-308 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–308LinkCopy Citation
After notifying the Secretary, the Division Director may:
(1)
Subpoena witnesses and administer oaths or affirmations in the examination of any controlling person, director, officer, employee, or agent of an association or related entity, or of any other person in relation to the affairs, transactions, and conditions of the association or related entity;
(2)
Require the production of records, books, papers, contracts, and other documents; and
(3)
Issue subpoenas duces tecum.
Md. Code Ann., Fin. Inst. § 8-309 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–309LinkCopy Citation
(a)
(1)
On June 30 of each year, or at the discretion of the Division Director or as circumstances warrant, the Division Director shall provide a written report to the Governor, the President of the Senate, the Speaker of the House of Delegates, and the Secretary of Labor on:
(i)
The operations of the Division Director’s office;
(ii)
The condition of the savings and loan industry, including any violations of this subtitle or Title 9 of this article and the regulations adopted under those titles; and
(iii)
As to the laws that the Division Director administers, amendments that the Division Director considers desirable.
(2)
The report is confidential and is not subject to disclosure in accordance with the provisions of Title 4, Subtitle 3, Part III of the General Provisions Article.
(b)
(1)
On June 30 of each year, the Division Director shall submit a report to the General Assembly in accordance with § 2–1257 of the State Government Article describing:
(i)
The operations of the Division Director’s office;
(ii)
The general condition of the savings and loan industry; and
(iii)
Any recommended legislative changes.
(2)
The report may include a summary of final enforcement actions taken by the Division Director but may not include pending investigations of violations of law reported under subsection (a) of this section.
Md. Code Ann., Fin. Inst. § 8-310 (2026)
Title 8. Savings and Loan Associations -- Board of Commissioners and Division
Subtitle 3. Division of Savings and Loan Associations
§ 8–310LinkCopy Citation
Subject to the evaluation and reestablishment provisions of the Program Evaluation Act, the provisions of this subtitle relating to the Division of Savings and Loan Associations and relating to the regulation of savings and loan associations are of no effect and may not be enforced after July 1, 1992.