Maryland S&L Sues State Insurer to Regain $13.2 Million from Defunct Private Fund

American Banker, March 28, 1986 | Go to article overview

Maryland S&L Sues State Insurer to Regain $13.2 Million from Defunct Private Fund


Maryland S&L Sues State Insurer to Regain $13.2 Million from Defunct Private Fund

BALTIMORE -- The Second National Savings & Loan Association of Salisbury, Md., has filed suit against the Maryland Deposit Insurance Fund corp. in Baltimore Federal court in an effort to recover more than $13.2 million it had on deposit with the now-defunct Maryland Savings-Share Inusrance Corp.

The Maryland Savings-Share Insurance Corp., a private insurance company that insured deposits at 102 state-chartered S&Ls, was absorbed into the Maryland Deposit Insurance Fund Corp. last May after a run on several large institutions resulted in the collapse of the state's privately insured thrift industry.

The Maryland General Assembly created the Maryland Deposit Insurance Fund Corp. to take over the private fund's responsibilities and restore public faith in the system. It also took over control of the private insurer's two major funds -- the $201 million-asset Central Insurance Fund, which was designed to cover losses, and the $85 million-asset Central Reserve Fund, which weas intended to provide liquidity to members.

Under the private insurer's regulations, once a member left the system it was entitled to get its money back from these two funds.

Since the private insurer's collapse last May, 38 associations have obtained federal deposit insurance, but none of their money has been returned.

Second National's suit is the second attempt by a formerly privately insured thrift to recover money from the Maryland Deposit Insurance Fund Corp.

Last October, Chevy Chase Savings & Loan Association, which with $2.3 billion in assets was the private insurer's largest member, filed suit in state court to recover about $82 million it had on deposit with the Maryland Deposit Insurance Fund Corp. It obtained federal deposit insurance last May 18, about a week after the run began.

When the state was negotiaing with Chase Manhattan Corp. to sell three troubled S&Ls, the Maryland Deposit Insurance Fund Corp. said it would use $25 million out of the Central Insurance Fund to complete the deal. Chevy Chase filed suit, saying that the Maryland Deposit Insurance Fund Corp. had to return its money before using insurance money to aid takeovers of troubled thrifts.

Last week, Baltimore Circuit Court Judge Joseph H.H. Kaplan ruled that Chevy Chase was not entitiled to receive any of its money out of the Central Reserve Fund until the state determines the extent of the losses arising out of the 10-month S&L crisis. Chevy Chase appealed the ruling to the state's second highest court and is waiting to see whether that court will hear the case.

Taking a different tack, Second National filed its suit in federal court.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Maryland S&L Sues State Insurer to Regain $13.2 Million from Defunct Private Fund
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.