HARRY HUGHES, Governor                                          85

Preamble

WHEREAS, To address the savings and loan crisis the Governor
has convened a second special session in October, 1985 at which
time the General Assembly will consider the passage of
legislation that would establish a new framework for
out-of-state bank holding companies to engage in the banking
business through the acquisition and conversion of specified
State-chartered savings and loan associations; and

WHEREAS, To address the savings and loan crisis, prevent
deterioration of the situation, protect depositors and taxpayers,
and stabilize the savings and loan industry, this Act is
proposed; and

WHEREAS, It is the purpose of this Act to establish a single
State set of procedures for out-of-state bank holding company
acquisitions of Maryland financial institutions; and

WHEREAS, In order to implement the legislative intent of
this Act, it is necessary to limit the provisions of Subtitle 9
of Title 5 of the Financial Institutions Article so as to
preclude any out-of-state bank holding company, other than one
that has acquired the stock of a bank incorporated in Maryland
under Section 5-903(b) of the Financial Institutions Article, and
has met the requirements of Section 5-903(b) and (c) of that
article; and

WHEREAS, Such a limitation will establish a single set of
procedures through which an out-of-state bank holding company may
obtain the privilege of conducting banking business in Maryland;
now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

5-903.

(c) (1) Subject to the provisions of this subsection, the
Commissioner may exempt any bank whose stock has been acquired by
an out-of-state bank holding company or its subsidiary, under
subsection (b) of this section, from the restrictions set forth
in subsections (b)(1) and (b)(4) of this section if the
requirements of subsection (b) have otherwise been met PRIOR TO
THE EFFECTIVE DATE OF THIS ACT and the bank and its out-of-state
bank holding company execute an agreement requiring them to do
the following:

(i) Acquire or commence construction of a
facility meeting the requirements of subparagraphs (ii) through
(iv) of this paragraph and located within an enterprise zone
designated under Article 41, § 266KK-2 of the Code;