Eastern Loan Association of Timonium, with assets of $119 million, was granted final approval for federal insurance yesterday by the Federal Savings and Loan Insurance Corporation.

Eastern is the 12th Maryland-chartered savings and loan association to win FSLIC approval since the state's savings and loan crisis in early May. Of the 102 thrift institutions that were state-chartered in May, 26 still are subject to a $1,000-per-month per account withdrawal limitation because they have neither won federal insurance nor been exempted from the limit by Gov. Harry Hughes.0:0000500000189:

Two men were killed last night when their car crossed the center line on Seneca Road in Darnestown and crashed head-on into another car, seriously injuring a mother and daughter who were in that vehicle, Montgomery County police reported.

Jay Lee, 22, of 1910 Peachtree Rd., Dickerson, died at the scene of the accident on Seneca Road near Detrick Road. Police said he was the driver of the car. His passenger, Thomas Balzer, 29, of 102 Cedar Ave., Gaithersburg, died at Suburban Hospital about three hours after the 6:30 p.m. accident, police said.

Paulette Fay Lazur, 42, of 14540 Pettit Way, Potomac, was reported in critical condition at Suburban Hospital; her 15-year-old daughter, Michelle, was reported in serious condition at Shady Grove Adventist Hospital.

Police said that Lee's car first struck a pickup truck, injuring no one, before striking the car driven by Lazur.

Probable cause of the accident, according to police, was excessive speed. Police were unable to say if anyone was wearing a seat belt.