2013 Maryland Code
FINANCIAL INSTITUTIONS
§ 9-1001 - Definitions

§9-1001.

(a) In this subtitle the following words have the meanings indicated.

(b) “Acquire” means:

(1) To merge or consolidate one savings and loan association with another savings and loan association or one savings and loan holding company with another savings and loan holding company;

(2) For a savings and loan association or savings and loan holding company to assume direct or indirect ownership or control of voting shares of another savings and loan association or savings and loan holding company if, after assumption of ownership or control, the 1st savings and loan association or savings and loan holding company directly or indirectly owns or controls more than 5 percent of any class of voting shares of the other savings and loan association or savings and loan holding company;

(3) For a savings and loan association or savings and loan holding company to assume directly or indirectly ownership or control of all or substantially all of the assets of another savings and loan association or savings and loan holding company; or

(4) To take any other action that results in direct or indirect control by a savings and loan association or savings and loan holding company of another savings and loan association or savings and loan holding company.

(c) (1) “Control” means:

(i) For a person directly or indirectly or acting in concert with 1 or more other persons, or through 1 or more subsidiaries, to own, control, or hold with power to vote, or to hold proxies representing, more than 5 percent of the voting shares of a savings and loan association, or to control in any manner the election of a majority of the directors of a savings and loan association;

(ii) For a person directly or indirectly or acting in concert with 1 or more other persons, or through 1 or more subsidiaries, to own, control, or hold with power to vote, or to hold proxies representing more than 5 percent of the voting shares or rights of another company, or to control in any manner the election or appointment of a majority of the directors or trustees of another company, or to be a general partner in or have contributed more than 25 percent of the capital of another company; or

(iii) For a person to be a trustee of a trust.

(2) A person shall be deemed to have control over a savings and loan association or any other company if the Division Director determines, after reasonable notice and opportunity for hearing, that the person directly or indirectly exercises a controlling influence over the management or policies of the savings and loan association or other company.

(d) (1) “Deposit” means any demand, negotiable order of withdrawal, time certificate, or savings deposit or savings share account made by an individual, corporation, partnership, State or federal governmental unit, or any other organization, without regard to the location of the depositor, except:

(i) A deposit by a savings and loan association; or

(ii) A deposit by a foreign government or foreign official institution.

(2) The amount of deposits shall be determined by reference to regulatory reports made by or to State or federal regulatory authorities.

(e) (1) “Deposit-taking office” means any savings and loan association, branch of a savings and loan association, or any other fixed location where a savings and loan association accepts deposits.

(2) “Deposit-taking office” does not include:

(i) An unmanned automatic teller machine, point of sale terminal, or other similar unmanned electronic banking facility at which deposits may be accepted;

(ii) A fixed location established for the purposes of loan production or representation;

(iii) Any other fixed location where deposits are not accepted; or

(iv) A fixed location outside the United States.

(f) “Interstate association” means an out-of-state association:

(1) That is not chartered under the laws of the United States; and

(2) That has deposit-taking offices in Maryland.

(g) (1) “Maryland association” means:

(i) A savings and loan association organized under this title; or

(ii) A savings and loan association or savings bank organized under the laws of the United States or of another state that has more than 80 percent of the total deposits of its deposit-taking offices held by deposit-taking offices located in Maryland.

(2) “Maryland association” does not include any savings and loan association acquired under Title 5, Subtitle 11 of this article.

(h) “Maryland savings and loan holding company” means a savings and loan holding company:

(1) That has its principal place of business in this State;

(2) That has more than 80 percent of the total deposits of savings and loan association subsidiaries held by savings and loan association subsidiaries, other than savings and loan association subsidiaries acquired by it in accordance with § 9-1005(b)(2) of this subtitle, located within the region; and

(3) That is not controlled by a savings and loan holding company other than a Maryland savings and loan holding company.

(i) “Out-of-state association” means a savings and loan association other than a Maryland association:

(1) That has its principal place of business in a jurisdiction within the region that allows acquisition on a reciprocal basis;

(2) That has more than 80 percent of the total deposits of its deposit-taking offices held by deposit-taking offices located within the region, excluding for purposes of applying this 80 percent requirement deposits in deposit-taking offices acquired by it in accordance with § 9-1005(b)(2) of this subtitle; and

(3) That is not controlled by a savings and loan holding company other than an out-of-state savings and loan holding company.

(j) “Out-of-state savings and loan holding company” means a savings and loan holding company other than a Maryland savings and loan holding company:

(1) That has its principal place of business in a jurisdiction within the region that allows acquisition on a reciprocal basis;

(2) That has more than 80 percent of the total deposits of savings and loan association subsidiaries held by savings and loan association subsidiaries located within the region, excluding for purposes of applying this 80 percent requirement deposits in savings and loan association subsidiaries acquired by it in accordance with § 9-1005(b)(2) of this subtitle; and

(3) That is not controlled by a savings and loan holding company other than an out-of-state savings and loan holding company.

(k) “Principal place of business”:

(1) Of a savings and loan association, means the jurisdiction in which the total deposits of the savings and loan association are the greatest; and

(2) Of a savings and loan holding company, means the jurisdiction in which the total deposits of savings and loan association subsidiaries of the savings and loan holding company are the greatest.

(l) “Reciprocal basis” means that, in conjunction with the laws of this State:

(1) The laws of the jurisdiction where the out-of-state association or out-of-state savings and loan holding company has its principal place of business permit Maryland associations and Maryland savings and loan holding companies to acquire savings and loan associations and savings and loan holding companies in that jurisdiction; and

(2) The laws of the jurisdiction where the out-of-state association or out-of-state savings and loan holding company has its principal place of business permit the out-of-state association or out-of-state savings and loan holding company to be acquired by the Maryland association or Maryland savings and loan holding company sought to be acquired.

(m) “Region” means the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia, and the District of Columbia.

(n) “Savings and loan association”:

(1) Means a corporation that is chartered under the laws of the United States or any state as a savings and loan association, building association, or savings bank, whether organized as a capital stock association or a mutual association; and

(2) Does not include a savings bank organized under Title 4 of this article.

(o) “Savings and loan holding company” means a company that controls a savings and loan association or controls any other company which is a savings and loan holding company.

(p) “Subsidiary” means a company that a savings and loan association or savings and loan holding company controls.