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§ 9-1005. Prohibited acquisitions

West's Annotated Code of MarylandFinancial InstitutionsEffective: April 10, 2012

West's Annotated Code of Maryland
Financial Institutions
Title 9. Savings and Loan Associations
Subtitle 10. Regional Reciprocal Interstate Savings and Loan Acquisitions (Refs & Annos)
Effective: April 10, 2012
MD Code, Financial Institutions, § 9-1005
§ 9-1005. Prohibited acquisitions
Currentness
In general
(a) Except as expressly permitted by federal law or Title 5, Subtitle 11 of this article, a savings and loan association or savings and loan holding company that is not a Maryland association, an interstate association, an out-of-state association, a Maryland savings and loan holding company, or an out-of-state savings and loan holding company may not acquire a Maryland association, a Maryland savings and loan holding company, an interstate association, or an out-of-state savings and loan holding company having a Maryland association subsidiary.
Entities ceasing to be associations or savings and loan holding companies
(b)(1) Except as provided in paragraph (2) of this subsection, if a Maryland association, interstate association, Maryland savings and loan holding company, or out-of-state savings and loan holding company ceases to be a Maryland association, interstate association, Maryland savings and loan holding company, or out-of-state savings and loan holding company, as defined in this subtitle, the association or savings and loan holding company shall, within 2 years, divest itself of all deposit-taking offices in Maryland, Maryland associations, and Maryland savings and loan holding companies.
(2) A Maryland association, an interstate association, a Maryland savings and loan holding company, or an out-of-state savings and loan holding company may not be required to divest its deposit-taking offices in Maryland, Maryland associations, or Maryland savings and loan holding companies if:
(i) An institution in another jurisdiction not within the region is acquired under § 116 or § 123 of the Garn-St. Germain Depository Institutions Act of 1982, as amended or 12 U.S.C. § 1823(f);
(ii) A savings and loan association or savings and loan holding company having deposit-taking offices in a jurisdiction other than within the region is acquired in the regular course of securing or collecting a debt previously contracted in good faith, and the savings and loan association or savings and loan holding company divests the securities or assets acquired within 2 years of the date of acquisition; or
(iii) An increase in deposits in deposit-taking offices or in savings and loan association subsidiaries not within the region is not the result of an acquisition of a savings and loan association or savings and loan holding company.
Acquisitions resulting in association having a deposit-taking office in Maryland
(c) Any acquisition which would result in an association chartered under this title, or under the laws of any other state, having a deposit-taking office in Maryland is prohibited.
Enforcement of section
(d)(1) The Division Director may enforce the provisions of this section through the imposition of penalties up to $500 per day each day the violation continues to exist, the issuance of cease and desist orders under § 8-401 of this article, and any other remedies as are provided by law.
(2) In determining the amount of financial penalty to be imposed, the Division Director shall consider the following:
(i) The seriousness of the violation;
(ii) The good faith of the violator;
(iii) The violator's history of previous violations;
(iv) The deleterious effect of the violation on the public and the savings and loan industry; and
(v) The assets of the violator.

Credits

Added by Acts 1987, c. 544, § 1, eff. July 1, 1987. Amended by Acts 1988, c. 6, § 1; Acts 1990, c. 149, § 1, eff. July 1, 1990; Acts 2012, c. 66, § 1, eff. April 10, 2012.
MD Code, Financial Institutions, § 9-1005, MD FIN INST § 9-1005
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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