Section 10-102 – Corporation Established

    There is a State of Maryland Deposit Insurance Fund Corporation in the Maryland Department of Labor.

Section 10-103 – Appointment, Term, and Powers of Fund Director; Board of Directors

    (a)    The Fund Director is appointed by the Governor.     (b)    The Fund Director serves at the pleasure of the Secretary of Labor.     (c)    For a period of 2 years after termination of employment with the Fund, if the Fund Director is employed by a savings and loan association that is insured by the Fund, or becomes a director, […]

Section 10-103.1 – Advisory Function of Board

    (a)    The function of the Board is advisory.     (b)    The Board shall give the Fund Director sound and impartial advice on:         (1)    The approval or disapproval of applications by a member association;         (2)    The administration of the State of Maryland Deposit Insurance Fund;         (3)    Protection of the interest of the general public and of depositors in member associations; and         (4)    Any […]

Section 10-104 – Employees

    (a)    The Fund Director may employ a staff in accordance with the State budget. The Fund Director and staff of the Fund are entitled to the salaries provided in the State budget. These salaries are not subject to the authority of the Secretary of Budget and Management.     (b)    Technical and professional employees are special appointments in the […]

Section 10-105 – Authority of Secretary

    The Fund Director exercises powers and performs duties subject to the authority of the Secretary of Labor.

Section 10-106 – Official Seal

    The Fund Director shall adopt an official seal. A description and impression of the seal shall be filed with the Secretary of State.

Section 10-107 – Fund Director to Devote Full Time to Duties of Fund

    The Fund Director shall devote full time to the duties of the Fund.

Section 10-108 – Conflicts of Interest — in General

    (a)    The Fund Director may not:         (1)    Be an officer or director of any State or federal savings and loan association; or         (2)    Engage in any other business relating to financial institutions.     (b)    (1)    The Fund Director may not own stock or be a depositor in any member association.         (2)    The employees of the Fund may not own stock in any […]

Section 10-109 – Conflicts of Interest — Other Prohibited Activities

    (a)    Except as provided in subsection (b) of this section, the Fund Director and employees of the Fund may not:         (1)    Become indebted to any member association; or         (2)    Engage or be interested in the sale of securities of or in the negotiation of loans for others to or with any member association.     (b)    This section does not apply […]

Section 10-110 – State of Maryland Deposit Insurance Fund

    (a)    (1)    (i)    The money of the State of Maryland Deposit Insurance Fund Corporation shall be maintained in a special nonlapsing fund, to be called the “State of Maryland Deposit Insurance Fund”.             (ii)    In addition to the powers expressly provided in this title, the Fund shall have, and through the Fund Director may exercise to the extent of the […]

Section 10-110.1 – Final Determination of Insurable Loss

    (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 […]

Section 10-110.2 – Advances by State to Fund; Money Recovered by Fund

    (a)    Any moneys advanced by the State to the Fund from general or special funds or from the proceeds of general obligation bonds shall be maintained in a separate account and may not be subject to attachment or any other judicial process by any person.     (b)    Any moneys recovered by the Fund as insurer, subrogee, conservator, or […]

Section 10-111 – Membership — Applications; Certification by Division Director

    (a)    (1)    Any association or the incorporators of a proposed association may apply to the Fund Director to become a member association.         (2)    The Fund Director shall refer each application received to the Division Director for certification of insurability.     (b)    If the Division Director approves the financial affairs, solvency, management, and board of directors of an association or proposed […]

Section 10-112 – Membership — Effective Upon Approval; Withdrawal; Accumulated Earnings Retained

    (a)    An association becomes a member when its application is approved by the Fund Director.     (b)    Subject to the terms and conditions adopted by the Fund Director, a member association may withdraw at any time from the Fund and have returned all or part of any capital advanced to the State of Maryland Savings-Share Insurance Corporation and […]

Section 10-113 – Rules and Regulations; Withdrawal From Fund

    (a)    The Fund Director shall adopt rules and regulations to carry out the provisions of this title.     (b)    (1)    Except as provided in subsection (c) of this section, the Fund Director may adopt rules and regulations providing for the payment of nonrefundable premiums instead of or in addition to capital deposits required for membership in the Fund and […]

Section 10-114 – Exchange of Information

    Section 9-504 of this article does not prevent the Division Director and the Fund Director from exchanging information about an association.

Section 10-115 – Application of State Insurance Laws

    The Fund is not subject to the Insurance Article.

Section 10-116 – Appropriation Policy

    It is the policy of this State that funds will be appropriated to the Fund to the extent necessary to protect holders of savings accounts in member associations, and to enable the Fund to meet its obligations under a hardship withdrawal plan or partial distribution of assets.

Section 10-117 – Eligibility for Membership — Major Associations

    (a)    A major association is not eligible for new or continued membership in the Fund on or after June 1, 1985, unless it qualifies under subsection (b) of this section.     (b)    A major association may remain a member of the Fund only under the following circumstances:         (1)    If the major association has applied for federal insurance on or […]

Section 10-118 – Eligibility for Membership — Other Associations

    (a)    (1)    An association that is not a major association and had total assets of at least $15,000,000 but less than $40,000,000 as of May 18, 1985, is not eligible for new or continued membership in the Fund on or after July 1, 1987.         (2)    An association that is not a major association and has total assets of […]