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§ 10-110.1. Payment of insurable loss

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 10. State of Maryland Deposit Insurance Fund Corporation (Refs & Annos)
MD Code, Financial Institutions, § 10-110.1
§ 10-110.1. Payment of insurable loss
Currentness
Determination of amount by Fund Director
(a) Upon final liquidation of a member association, the Fund Director shall:
(1) Subject to subsection (b) of this section, determine the amount of insurable loss in the manner established by the rules and regulations of the Fund; and
(2) Make provision for the payment or assumption of any insurable loss to each depositor less any payments made to, or accounts made available to, a depositor under subsection (c) of this section.
Deadline for determination
(b) The determination of insurable loss under subsection (a)(1) of this section shall occur no later than 4 years from the date a member association is placed in receivership.
Payments from Fund
(c) Subject to any other conditions established under law, if the Fund Director is reasonably satisfied that an insurable loss will be incurred upon final liquidation, in order to facilitate the payment of deposit insurance to depositors of a member association and to reasonably reduce the administrative costs of a liquidation, including demands on any hardship withdrawal plan, the Fund may, either upon final liquidation or earlier, and either from available moneys in the Fund or from any other State funds advanced to the Fund for that purpose:
(1) Make a cash payment or payments or issue an obligation under a contract with one or more insured institutions with respect to the making available of insured accounts in an amount equal to all or any portion of the depositors' savings accounts to any or all of the depositors of a member association in receivership;
(2) Make a cash payment or payments, in an amount equal to all or any portion of the depositors' savings accounts, to any or all of the depositors of a member association in receivership; or
(3) Both.
Subrogation of Fund to rights of depositor
(d) Upon making a cash payment pursuant to a contract under subsection (c)(1) of this section or directly to a depositor under subsection (c)(2) of this section, or otherwise in satisfaction of its insurance obligation with respect to any depositor, the Fund shall be subrogated to all rights of the depositor, including its rights against the assets of the member association, its shareholders, directors, or officers, to the extent of the payment.
Proof of entitlement as subrogee
(e) In proving its entitlement as a subrogee in any action, the Fund need only show proof of:
(1) Reimbursement of a savings account holder, in part or in full, under this title; or
(2) The making of payments or a capital contribution or the issuance of its obligations to an entity that assumes savings deposit or share account liabilities of a member association.

Credits

Added by Acts 1986, c. 12, § 2, eff. April 3, 1986. Amended by Acts 1987, c. 11, § 1.
MD Code, Financial Institutions, § 10-110.1, MD FIN INST § 10-110.1
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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