Broad authority for the governor to regulate state S&Ls as a group or on an individual basis with a mechanism to provide special protection for depositors facing hardships. The legislation will remain in effect through June 30, 1986.
* Legislation permitting appointment of conservators or receivers for troubled S&Ls, and pledges of collateral to the Federal Reserve to support borrowing from the Fed.
* Creation of the Maryland Deposit Insurance Fund (MDIF), within the Department of Licensing and Regulation, to assume assets and liabilities of Maryland Savings-Share Insurance Corp. (MSSIC).
After June 1, associations with assets of $40 million or more can remain a member for up to one year. Associations with assets of less than $40 million but more than $15 million will be permitted to join the new agency for no more than two years. Those with less than $15 million in assets will be permitted to belong for four years, when the agency would go out of existence.
* Provisions to help state S&Ls qualify for federal insurance, which requires a 5 percent net worth for MSSIC S&Ls. It means that a savings institution must have accessible funds equal to 5 percent of liability.
* Creation of a $100 million general obligation bond issue to fund the MDIF or to purchase net worth certificates.
* Legislation giving the state and federal governments precedence in claims against S&Ls. Emergency appropriation of $1 million to the Board of Public Works for administrative costs of implementing the program.