(a) Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least:
(1) The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and
(2) Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent.
Guaranty fund required before savings bank establishes branch
(b)(1) Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection.
(2) 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.
(3) 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:
(i) 5 percent of its total deposits; and
(ii) The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch.
Credits
Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1982, c. 882; Acts 1996, c. 326, § 2, eff. July 1, 1996.
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.
