Section 9-640 - Powers of converted capital stock savings and loan association; assets; conducting insurance activity.
§ 9-640. Powers of converted capital stock savings and loan association; assets; conducting insurance activity.
(a) Powers.- Except as provided in subsections (b), (c), and (d) of this section, a capital stock savings and loan association converted under this part to a commercial bank may exercise all the powers of, and shall be subject to all the restrictions imposed on, a commercial bank under this article.
(b) Power to hold assets or conduct business activities.- A commercial bank that results from a conversion of a capital stock savings and loan association may hold assets or conduct business activities, other than insurance assets and insurance activities, that result from the conversion and that do not conform with applicable law, unless a different period is authorized by federal regulatory agencies:
(1) For a period of 5 years after the conversion; and
(2) If the Commissioner approves, for an additional period not exceeding 5 years.
(c) Holding insurance assets or conducting insurance activities held or conducted before conversion.- A commercial bank resulting from a conversion of a capital stock savings and loan association may hold insurance assets or conduct insurance activities that were held or conducted before the conversion and that do not conform with applicable law, for a period of 2 years after the date of conversion, unless a different period is authorized by federal regulatory agencies.
(d) Extent of authority to hold insurance assets for conducting insurance activities.- Except as provided in subsection (c) of this section, a commercial bank resulting from the conversion of a capital stock savings and loan association may hold insurance assets or conduct insurance activities only to the extent permitted under applicable law for a Maryland commercial bank.
[1986, ch. 591; 1987, ch. 11, § 1; 1996, ch. 326, § 2.]