1. (a) Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least:

   1. (1) The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and
   2. (2) Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent.

2. (b)

   1. (1) Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection.
   2. (2) For a branch that is to be located inside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than 5 percent of its total deposits.

   3. (3) For a branch that is to be located outside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than the sum of:

      1. (i) 5 percent of its total deposits; and
      2. (ii) The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch.

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1982, c. 882; Acts 1996, c. 326, § 2, eff. July 1, 1996.