reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-112 - Conflicts of Interest -- Other Prohibited Activities

(a)    Except as provided in subsection (b) of this section, the Commissioner, employees of the Commissioner’s office, and other State employees acting under the supervision of the Commissioner’s office may not:
(1)    Become indebted to any institution that is subject to the jurisdiction of the Commissioner; or
(2)    Engage or be interested in the sale of securities of or in the negotiation of loans for others to or with any banking institution or credit union.
(b)    This section does not apply to a loan that is:
(1)    Made to a member of a credit union that has a membership of over 60,000 State employees; and
(2)    Approved by:
(i)    A credit committee approval under § 6-603(a)(1) of this article; and
(ii)    The Board of Directors.
(c)    The Commissioner, employees of the Commissioner’s office, and other State employees acting under the supervision of the Commissioner’s office may not:
(1)    Serve as an officer, director, or committee member of a credit union; or
(2)    Exercise any voting rights in a credit union.
(d)    Any person who violates any provision of this section is subject to forfeiture of that person’s office or employment.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-113 - Investigative and Enforcement Powers -- in General

(a)    In this section, “affiliate” has the meaning stated in § 5–401(b) of this article.
(b)    Except as provided in subsection (d) of this section, the investigative and enforcement powers of the Commissioner authorized under this subtitle are in addition to any investigative or enforcement powers of the Commissioner authorized under any other provision of law.
(c)    For fiscal year 2001 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Division of Financial Regulation funding the positions necessary to implement the investigative and enforcement powers authorized under this subtitle.
(d)    Except as provided in §§ 2–113.1 and 2–117 of this subtitle, the provisions of §§ 2–114 through 2–117, inclusive, of this subtitle do not apply to:
(1)    Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State;
(2)    Any out–of–state bank, as defined in § 5–1001 of this article, having a branch that accepts deposits in this State;
(3)    Any institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State; or
(4)    An affiliate of an institution described in item (1), (2), or (3) of this subsection over which the Commissioner has no jurisdiction.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-113.1 - Acts Prohibited by Regulated Person -- Further Specific Acts or Practices -- Financial Institutions Subject to Law

(a)    A regulated person, as defined in § 2–117 of this subtitle, may not:
(1)    Issue an advertisement or make a representation that is false, misleading, or deceptive;
(2)    Impose, as a condition for a loan, a restriction on obtaining credit, property, or service from a competitor unless the restriction is reasonably necessary to secure the loan;
(3)    Impose, as a condition for a service, a restriction on obtaining credit, property, or service from a competitor; or
(4)    Engage in an act or a practice that is anticompetitive, unfair, deceptive, abusive, or injurious to the public interest.
(b)    The Commissioner may further define specific acts or practices that are anticompetitive, unfair, deceptive, abusive, or injurious to the public interest.
(c)    Notwithstanding § 2–113(d) of this subtitle, a financial institution or a subsidiary or an affiliate of a financial institution is subject to this section whenever the financial institution or subsidiary or affiliate engages in activity:
(1)    For which it maintains or is required to maintain a license or registration issued by the Commissioner or the State Collection Agency Licensing Board; or
(2)    Subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-114 - Investigative and Enforcement Powers -- Powers of Commissioner; Oaths and Discovery; Order to Compel

(a)    The Commissioner may:
(1)    Make public or private investigations as the Commissioner considers necessary to:
(i)    Determine whether a person has violated a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction; or
(ii)    Aid in the enforcement of a law or in the prescribing of regulations, rules, and orders over which the Commissioner has jurisdiction;
(2)    Require or permit a person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning the matter to be investigated; and
(3)    Subject to the provisions of Title 4 of the General Provisions Article:
(i)    Deny records of an investigation; or
(ii)    Publish information concerning a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction.
(b)    For the purpose of an investigation or proceeding, the Commissioner or an officer designated by the Commissioner may administer oaths and affirmations, subpoena witnesses, compel witness attendance, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the Commissioner considers relevant or material to the inquiry.
(c)    (1)    In case of contumacy by or refusal to obey a subpoena issued to a person, the circuit court of the county in which the person resides or transacts business, on application by the Commissioner, may issue to the person an order requiring the person to appear before the Commissioner or the officer designated by the Commissioner to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.
(2)    Failure to obey the order of the court may be punished by the court as a contempt of court.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-115 - Investigative and Enforcement Powers -- Cease and Desist Orders; Authorized Actions for Violations; Penalties

(a)    When the Commissioner determines that a person has engaged in an act or practice constituting a violation of a law, regulation, rule or order over which the Commissioner has jurisdiction, and that immediate action against the person is in the public interest, the Commissioner may in the Commissioner’s discretion issue, without a prior hearing, a summary order directing the person to cease and desist from engaging in the activity, provided that the summary cease and desist order gives the person:
(1)    Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and
(2)    Notice that the summary cease and desist order will be entered as final if the person does not request a hearing within 15 days of receipt of the summary cease and desist order.
(b)    When the Commissioner determines after notice and a hearing, unless the right to notice and a hearing is waived, that a person has engaged in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may in the Commissioner’s discretion and in addition to taking any other action authorized by law:
(1)    Issue a final cease and desist order against the person;
(2)    Suspend or revoke the license of the person;
(3)    Issue a penalty order against the person imposing a civil penalty not exceeding:
(i)    $10,000 for a first violation; and
(ii)    $25,000 for each subsequent violation;
(4)    Issue an order against the person requiring the person to take affirmative action to correct the violation, including making restitution to any person aggrieved by the violation; or
(5)    Take any combination of the actions specified in this subsection.
(c)    In determining the amount of financial penalty to be imposed under subsection (b) of this section, the Commissioner shall consider the following factors:
(1)    The seriousness of the violation;
(2)    The good faith of the violator;
(3)    The violator’s history of previous violations;
(4)    The deleterious effect of the violation on the public and the industry involved;
(5)    The assets of the violator; and
(6)    Any other factors relevant to the determination of the financial penalty.
(d)    Notice of any hearing under this section shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-116 - Investigative and Enforcement Powers -- Circuit Court Action

(a)    When it appears to the Commissioner that a person is about to engage in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may bring an action in the circuit court of the county in which the person resides or transacts business to obtain one or more of the following remedies:
(1)    A temporary restraining order; or
(2)    A temporary or permanent injunction.
(b)    When it appears to the Commissioner that a person has engaged in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may bring an action in the circuit court of the county in which the person resides or transacts business to obtain one or more of the following remedies:
(1)    A temporary restraining order;
(2)    A temporary or permanent injunction;
(3)    A civil penalty not exceeding:
(i)    $10,000 for a first violation; and
(ii)    $25,000 for each subsequent violation;
(4)    A declaratory judgment;
(5)    An order preventing access to the violator’s assets;
(6)    Rescission;
(7)    Restitution; and
(8)    Any other relief as the court deems just.
(c)    The Commissioner may not be required to post a bond in an action under this section.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 1 - Commissioner of Financial Regulation › Section 2-118 - Banking Institution and Credit Union Regulation Fund

(a)    In this section, “Fund” means the Banking Institution and Credit Union Regulation Fund established under this section.
(b)    There is a Banking Institution and Credit Union Regulation Fund that consists of:
(1)    All revenue received for the chartering and regulation of persons who engage in the business of a banking institution or credit union under this article; and
(2)    Any other fee, assessment, or revenue received by the Commissioner from banking institutions and credit unions under this article.
(c)    Notwithstanding subsection (b) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner from banking institutions and credit unions under this article into the General Fund of the State.
(d)    The purpose of the Fund is to pay all the costs and expenses incurred by the Commissioner that are related to the regulation of banking institutions and credit unions under this article, including:
(1)    Expenditures authorized under this article; and
(2)    Any other expense authorized in the State budget.
(e)    (1)    All the costs and expenses of the Commissioner relating to the regulation of banking institutions and credit unions under this article shall be included in the State budget.
(2)    Any expenditures from the Fund to cover costs and expenses of the Commissioner may be made only:
(i)    By an appropriation from the Fund approved by the General Assembly in the annual State budget; or
(ii)    By the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.
(3)    If, in any given fiscal year, the amount of the revenue collected by the Commissioner and deposited into the Fund exceeds the actual appropriation for the Commissioner to regulate banking institutions and credit unions under this article, the excess amount shall be carried forward within the Fund.
(f)    (1)    The State Treasurer is the custodian of the Fund.
(2)    The State Treasurer shall deposit payments received from the Commissioner into the Fund.
(g)    (1)    The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State.
(2)    Unless otherwise provided by law, no part of the Fund may revert or be credited to:
(i)    The General Fund of the State; or
(ii)    A special fund of the State.
2023 Maryland Statutes › Financial Institutions › Title 2 - Commissioner and Boards › Subtitle 4 - Termination of Certain Provisions › Section 2-401 - Bank Commissioner

Subject to the evaluation and reestablishment provisions of the Program Evaluation Act, the provisions of this article that create the office of the Commissioner of Financial Regulation or relate to the powers and duties of the Commissioner and any regulations adopted under these provisions shall terminate and be of no effect after July 1, 2032.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 1 - Definitions; General Provisions › Section 3-101 - Definitions

(a)    In this title the following words have the meanings indicated.
(b)    “Capital stock” includes both common and preferred stock of a commercial bank.
(c)    “Debt instrument” means any capital note, debenture, bond, or certificate of beneficial interest issued by a commercial bank.
(d)    “Inhabitants” means the population of a municipal area, as determined by the latest federal or State census.
(e)    “Nondepository trust company” means a trust company that is not insured by the Federal Deposit Insurance Corporation.
(f)    “State bank” means an institution that is incorporated under the laws of this State as a bank.
(g)    “Trust company” means an institution that is incorporated under the laws of this State as a trust company.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 1 - Definitions; General Provisions › Section 3-102 - Applicability of Article to Certain Trust Companies

Every trust company has the powers granted by, and is subject to, the provisions of this article that relate to trust companies. However, except as provided in § 3-209(b) of this title as to the establishment of branches, the provisions of this article do not repeal, modify, or affect any special right, privilege, or power given by charter to a trust company that was organized and doing business before April 8, 1910.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 1 - Definitions; General Provisions › Section 3-103 - Requirements and Standards for Exercise of Fiduciary Powers

(a)    This section applies to a commercial bank that:
(1)    Is not in the business of accepting deposits or retaining funds in a deposit account as defined in § 5-509 of this article; and
(2)    Is not controlled by or under common control with a banking institution or a national banking association with its principal office located in this State.
(b)    A commercial bank subject to this section shall operate in compliance with all requirements and standards for the exercise of fiduciary powers that are applicable under 12 C.F.R. Part 9 to a trust department of a State-chartered trust company that is in the business of accepting deposits or retaining funds in a deposit account as defined in § 5-509 of this article.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-202 - Articles of Incorporation -- Execution and Contents

(a)    The incorporators shall sign and acknowledge two copies of articles of incorporation.
(b)    The articles of incorporation shall include:
(1)    The name and address of each incorporator;
(2)    A statement that:
(i)    Each incorporator is at least 18 years old;
(ii)    Each incorporator is a citizen of the United States; and
(iii)    At least one of the incorporators is a citizen of this State;
(3)    A statement that the incorporators are associating to form a State bank or a trust company under this subtitle;
(4)    The name of the State bank or trust company, which may not be similar in any material respect to the name of any other bank or trust company in this State;
(5)    The municipal area and county where the principal banking office of the State bank or trust company is to be located;
(6)    The number of directors and the names and residence addresses of those who will serve as directors until their successors are elected and qualify; and
(7)    As to its capital stock:
(i)    The total number of shares that the State bank or trust company has authority to issue;
(ii)    The par value of the shares, which may not be less than $10 a share; and
(iii)    The total par value of all shares.
(c)    The articles of incorporation may include:
(1)    Any provision that requires for any purpose the concurrence of a greater proportion of the votes of all classes or of any class of capital stock than the proportion required by this article for that purpose; and
(2)    Any provision that defines, limits, or denies the preemptive rights of stockholders to acquire additional stock of the State bank or trust company.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-203 - Articles of Incorporation -- Filing for Examination and Approval

(a)    The incorporators shall file with the Commissioner for examination the two copies of the articles of incorporation.
(b)    The Commissioner shall investigate and determine if:
(1)    The articles are framed in accordance with law;
(2)    The character, responsibility, and general fitness of the incorporators and directors named in the articles command confidence and warrant belief that the business of the proposed commercial bank will be conducted honestly and efficiently, in accordance with the intent of this article; and
(3)    Allowing the proposed commercial bank to engage in business:
(i)    Will promote public convenience and advantage; and
(ii)    Is expedient and desirable.
(c)    After the investigation, the Commissioner may require any change in the articles of incorporation that the Commissioner considers necessary.
(d)    (1)    Within 6 months after the articles are filed for examination, the Commissioner shall sign, date, and endorse each copy of the articles as “approved” or “refused”.
(2)    If formation of the commercial bank is refused, the Commissioner shall return one of the endorsed copies of the articles to the incorporators.
(3)    If formation of the commercial bank is approved, the Commissioner shall:
(i)    Return one of the endorsed copies of the articles to the incorporators; and
(ii)    Keep and record one of the endorsed copies.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-203.1 - Articles of Incorporation -- Fingerprint Requirements

(a)    In this section, “executive officer” has the meaning stated in 12 C.F.R. § 215.2.
(b)    In connection with the filing of articles of incorporation of a commercial bank with the Commissioner, each incorporator, executive officer, and director of a proposed or incorporated commercial bank shall provide fingerprints for use by the Federal Bureau of Investigation and the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services to conduct criminal history records checks.
(c)    An individual required by this section to provide fingerprints shall pay any processing or other fee required by the Federal Bureau of Investigation or the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-204 - Articles of Incorporation -- Filing for Record

(a)    If the Commissioner approves the articles of incorporation, the incorporators shall file for record one of the endorsed copies of the articles with the State Department of Assessments and Taxation.
(b)    Articles of incorporation that are filed for record are not effective unless the Commissioner has endorsed the articles as approved.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-205 - Corporate Status; Perpetual Existence

(a)    When articles of incorporation are filed for record in accordance with § 3-204 of this subtitle, the commercial bank becomes a corporation.
(b)    Notwithstanding any charter provision or provision of law, each commercial bank has the right to perpetual existence until forfeiture.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-206 - General Powers of Commercial Bank

(a)    Except as otherwise provided in this article, a commercial bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law.
(b)    In addition to the powers set forth elsewhere in this article, a commercial bank may:
(1)    Receive deposits of money on which interest may be paid;
(2)    Buy and sell coin and bullion;
(3)    Buy and sell foreign and domestic exchange;
(4)    Subject to § 3-604 of this title, accept drafts drawn on it;
(5)    Issue letters of credit that authorize the holder to draw drafts on it or on its correspondents payable at sight or at a time not exceeding 1 year;
(6)    Issue its debt instruments for money that is borrowed or received on deposit or for investment;
(7)    Lend money on personal security or on real or personal property;
(8)    Subject to § 3-605 of this title, become owner and lessor of personal property;
(9)    Subject to § 5-503 of this article, buy, hold, lease, and convey real property;
(10)    Pledge collateral to secure deposits of:
(i)    The federal government or its agencies; or
(ii)    Any state or its political subdivisions;
(11)    Pledge securities to secure the money of an estate administered under the federal bankruptcy laws;
(12)    Without being deemed a branch of a depository institution affiliate, act in accordance with § 101(d) of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, as agent of any depository institution affiliate in:
(i)    Receiving deposits;
(ii)    Renewing time deposits;
(iii)    Closing loans;
(iv)    Servicing loans; or
(v)    Receiving payments on loans and other obligations; and
(13)    Exercise all of the powers usual in carrying on a banking business.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-207 - Additional Powers of Trust Company

In addition to the powers set forth elsewhere in this article, a trust company may:
(1)    Receive deposits of money, securities, and other personal property from any person;
(2)    Act as the agent of any foreign or Maryland corporation for any lawful purpose;
(3)    Act as the fiscal or transfer agent of any state, any political subdivision of any state, or any corporation;
(4)    Accept and execute any trust and any powers that are conferred on or entrusted to it in any manner, including any grant, assignment, transfer, devise, or bequest by any person or by order of a court;
(5)    Accept and hold trust property;
(6)    Act as trustee under a mortgage or bond issue of a corporation or political subdivision;
(7)    Act as personal representative of the estate of any deceased individual; and
(8)    Act as guardian, receiver, or trustee of the estate of any person under order or appointment of a court and as depositary of money paid to the court for the benefit of the person.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-209 - Minimum Capital Requirements -- Commercial Banks

(a)    (1)    Before the Commissioner issues a certificate to do business, the required capital stock and the required surplus shall be paid in full.
(2)    A commercial bank shall have required capital stock that equals at least:
(i)    $750,000, if it is in a municipal area with not more than 50,000 inhabitants; and
(ii)    $1.5 million, if it is in a municipal area with more than 50,000 inhabitants.
(3)    A commercial bank shall have a surplus in an amount that equals at least 20 percent of its required capital stock.
(b)    (1)    Before a commercial bank establishes a branch, the commercial bank shall have capital stock and surplus as provided in this subsection.
(2)    For a branch that is to be located inside the municipal area of the principal banking office of the commercial bank, the commercial bank shall have capital stock and surplus that equal at least the sum of the amounts required by subsection (a) of this section.
(3)    For a branch that is to be located outside the municipal area of the principal banking office of the commercial bank, the commercial bank shall have capital stock and surplus that equal at least the sum of:
(i)    The amount required by subsection (a) of this section; and
(ii)    1.    $120,000, if it is in a municipal area with not more than 25,000 inhabitants;
2.    $180,000, if it is in a municipal area with more than 25,000 and not more than 100,000 inhabitants;
3.    $240,000, if it is in a municipal area with more than 100,000 and not more than 250,000 inhabitants; and
4.    $900,000, if it is in a municipal area with more than 250,000 inhabitants.
(c)    Unless otherwise provided by law, the unimpaired capital and surplus of a commercial bank include its debt instruments issued under § 3–312 of this title.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-211.1 - Receivership -- Nondepository Trust Company

(a)    In this section, “receivership” means a proceeding in which:
(1)    The Commissioner takes possession of a nondepository trust company in accordance with § 5–601, § 5–602, or § 5–602.1 of this article; and
(2)    A receiver is appointed in accordance with § 5–605 of this article.
(b)    (1)    A nondepository trust company shall pledge securities or deliver a surety bond to the Commissioner, for the benefit of the Commissioner, to defray the costs of a receivership.
(2)    The amount of the securities or surety bond shall be determined by the Commissioner in an amount that the Commissioner deems appropriate to defray such costs, but in no event shall the amount exceed:
(i)    $1,000,000 for a nondepository trust company with a composite rating, using the Uniform Interagency Trust Rating System, of 1 or 2; or
(ii)    $3,000,000 for a nondepository trust company with a composite rating, using the Uniform Interagency Trust Rating System, of 3, 4, or 5.
(c)    Subject to the provisions of Title 5, Subtitle 6 of this article, in the event of a receivership, the Commissioner or a receiver appointed under § 5–605 of this article may, without regard to any priorities, preferences, or adverse claims, reduce the pledged securities or the surety bond to cash and use the cash to defray the costs associated with the receivership.
(d)    (1)    If a nondepository trust company chooses to pledge securities to satisfy the requirement of subsection (b) of this section, the securities shall be held at a depository institution or a federal reserve bank approved by the Commissioner.
(2)    The Commissioner may specify the types of securities that may be pledged.
(3)    Any fees associated with holding pledged securities shall be the responsibility of the nondepository trust company.
(4)    Securities pledged by a nondepository trust company may not be assets relied on by the nondepository trust company to meet the minimum capital requirements of § 3–209 of this subtitle.
(5)    Any income earned on securities pledged by a nondepository trust company:
(i)    Shall be paid to the nondepository trust company; and
(ii)    May not be held by the Commissioner.
(e)    (1)    If a nondepository trust company chooses to purchase a surety bond to satisfy the requirement of subsection (b) of this section, the surety bond shall be issued by a bonding company that:
(i)    Is authorized to do business in this State; and
(ii)    Has a rating in one of the three highest grades as determined by a national rating service.
(2)    The surety bond shall be in a form approved by the Commissioner.
(3)    A nondepository trust company may not obtain a surety bond from any affiliate, as defined in § 5–401 of this article.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-212 - Examination Before Certification

(a)    After its articles of incorporation are filed for record and its required capital stock and surplus are paid in full, the commercial bank shall give to the Commissioner:
(1)    Notice that the commercial bank has complied with all of the applicable provisions of this title; and
(2)    A certified list of all of its stockholders, including their names and residence addresses and the number of shares of capital stock for which each paid.
(b)    The Commissioner shall examine the condition of the commercial bank to determine:
(1)    The name and residence of each director;
(2)    If the required capital stock and surplus are paid in full; and
(3)    If the commercial bank has complied with all other applicable provisions of this title.
(c)    If, after examination, it appears that the commercial bank lawfully is entitled to do business, the Commissioner shall issue the certificate of authority to do business.
(d)    (1)    If, after examination, it appears that the required capital stock and surplus have not been paid in full, the Commissioner may not issue the certificate of authority to do business.
(2)    If, after examination, the Commissioner has reason to believe that the stockholders formed the commercial bank for any purpose other than legitimate business under this article, the Commissioner, with the advice and consent of the Secretary of Labor, may withhold the certificate.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 2 - Formation and Powers › Section 3-213 - Charter Amendments

(a)    Any commercial bank may amend its charter, in any manner not inconsistent with law, as provided in this section.
(b)    A proposed amendment shall be approved at a meeting called for that purpose, by the affirmative vote of the holders of two thirds of the capital stock of the commercial bank.
(c)    If the proposed amendment is to authorize the issuance of preferred stock, the proposed amendment shall be approved by the affirmative vote of the holders of a majority of the capital stock of the commercial bank.
(d)    After an amendment is approved by the stockholders:
(1)    The president of the commercial bank and either its cashier or treasurer shall certify the amendment; and
(2)    The amendment shall be signed, filed with the Commissioner for examination, and, if approved by the Commissioner, filed for record as required for articles of incorporation.
(e)    On filing the amendment for examination, the commercial bank shall pay to the Commissioner an examination fee of $20.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-301 - Capital Stock in General

(a)    A subscription for the original capital stock of a commercial bank shall conform, to the extent applicable, to the provisions of the Maryland General Corporation Law that relate to stock subscriptions.
(b)    An increase in the outstanding capital stock of a commercial bank is not valid unless:
(1)    The commercial bank has sufficient surplus so that after the increase in capital stock its surplus will equal at least 20 percent of its capital stock; or
(2)    The amount of the increase is subscribed for and paid as required for subscription for original capital stock.
(c)    (1)    Each share of common stock is entitled to one vote.
(2)    A stockholder may vote in person or by proxy the capital stock that the stockholder owns of record.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-302 - Preferred Stock

(a)    If the Commissioner approves, a commercial bank may issue preferred stock, in the amount and with the par value that the Commissioner approves, as provided in this section.
(b)    Unless otherwise provided by law, preferred stock issued under this section is not valid until the commercial bank receives the purchase price in an amount that equals at least par value.
(c)    If the Commissioner approves, preferred stock may be convertible into common stock on the terms and conditions that the charter provides. However, preferred stock is not convertible:
(1)    Into common stock of a greater total par value; or
(2)    At any time when the commercial bank would not have a surplus in an amount that equals at least 20 percent of its capital stock outstanding immediately after the conversion.
(d)    (1)    The holder of preferred stock is entitled to cumulative dividends at a rate not exceeding six percent a year of its par value.
(2)    Dividends on common stock may not be declared or paid until the cumulative dividends on the preferred stock are fully paid.
(e)    Each holder of preferred stock has the voting rights that the charter provides and the Commissioner approves.
(f)    (1)    A commercial bank may retire preferred stock in the manner and on the terms and conditions that the charter provides and the Commissioner approves.
(2)    If the Commissioner approves, the commercial bank may retire its preferred stock out of any surplus above that required by this title.
(3)    The commercial bank may not have at any time less than its required capital stock.
(g)    If a commercial bank dissolves voluntarily or a receiver is appointed for it, the holders of its common stock may not be paid until the holders of its preferred stock are paid, for each of their shares:
(1)    The amount that the charter provides, but not more than the purchase price under subsection (b) of this section and not less than the par value; and
(2)    All accumulated and unpaid dividends.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-304 - Loans on and Acquisitions of Own Stock Prohibited

(a)    Except as necessary to prevent a loss on a loan previously made in good faith, a commercial bank may not:
(1)    Make any loan secured by any of its outstanding capital stock; or
(2)    Buy or hold any of its outstanding capital stock.
(b)    If a commercial bank buys or holds any of its outstanding capital stock, the commercial bank shall sell the stock at public or private sale within:
(1)    1 year after the date of acquisition; or
(2)    Any longer period that the Commissioner authorizes.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-305 - Reduction of Capital

(a)    A reduction of the outstanding capital stock of a commercial bank:
(1)    Is not valid unless approved by the Commissioner; and
(2)    May not be made to an amount that is less than that required in § 3-209(b) of this title.
(b)    The Commissioner shall base approval on a finding that the assets of the commercial bank remaining after the proposed reduction of its capital stock will be sufficient to pay all of the claims of existing creditors.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-306 - Maintenance of Surplus; Losses

(a)    If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank:
(1)    Shall transfer to its surplus annually at least 10 percent of its net earnings; and
(2)    May not declare or pay any cash dividends that exceed 90 percent of its net earnings.
(b)    Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-307 - Cash Dividends

(a)    The board of directors of a commercial bank may declare a cash dividend only from the following, after providing for due or accrued expenses, losses, interest, and taxes:
(1)    Its undivided profits; or
(2)    With the prior approval of the Commissioner, its surplus in excess of 100 percent of its required capital stock.
(b)    If any stockholder receives a cash dividend that was declared or paid in violation of this section or § 3-306 of this subtitle, the stockholder is liable to the commercial bank for the full amount of the dividend to the extent that the capital and surplus of the commercial bank fails to meet the requirements of § 3-306 of this subtitle.
(c)    If any director of a commercial bank votes for or assents to the declaration of any cash dividend when the director knows that the commercial bank is insolvent or is in danger of insolvency or when the director does not have reason to believe that there are sufficient undivided profits or surplus properly available to pay the dividend under this section, the director is liable, individually and jointly with all other directors so voting or assenting, to the persons who were creditors of the commercial bank when the dividend was declared for the amount by which these creditors remain unpaid, but not more than twice the amount of the dividend.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-308 - Stock Dividends

(a)    The board of directors of a commercial bank may not declare a stock dividend unless its surplus, after the increase in capital stock, is equal to at least 20 percent of the outstanding capital stock as increased.
(b)    If the surplus of the commercial bank, after the increase in capital stock, is less than 100 percent of its capital stock as increased, the commercial bank annually shall transfer to surplus at least 10 percent of its net earnings until the surplus is 100 percent of its capital stock as increased.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-309 - Stock Ledger

(a)    (1)    Each commercial bank shall keep a stock ledger, which shall contain the name and address of each stockholder and the number of shares of stock that the stockholder holds.
(2)    In any proceeding, the stock ledger is presumptive evidence of the facts stated in it.
(b)    (1)    Any stockholder, director, or officer of a commercial bank may inspect the stock ledger during usual business hours.
(2)    Failure to show the stock ledger to an individual on that individual’s rightful demand subjects the officer responsible for the failure to a civil penalty of $50, payable to the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-310 - Annual Meeting of Stockholders

(a)    The annual meeting of the stockholders of a commercial bank shall be held at the time and place that the bylaws provide.
(b)    (1)    In addition to any other required notice, at least one notice of the annual meeting shall be published at least 10 days before the meeting in a newspaper published or circulated in the county where the commercial bank has its principal banking office.
(2)    The board of directors need not publish notice of the annual meeting if every stockholder entitled to vote at the meeting executes a written waiver of the notice before the date set for the publication.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-311 - Oath of Stockholder Before Voting

(a)    On demand of a stockholder, a person may not vote any share of capital stock that, on the stock ledger of a commercial bank, appears to have been transferred within the preceding year, unless the person takes an oath as provided in this section.
(b)    The challenged voter shall take an oath, before the judges of election or other officers of the meeting:
(1)    That the voter is the true owner of the capital stock and that, without any understanding that the capital stock be transferred to the party from whom it was received, the voter:
(i)    Bought and paid or secured payment for it with full consideration; or
(ii)    Received it by inheritance, bequest, survivorship, distribution, or gift; or
(2)    If the challenged voter is voting for a principal, by proxy or power of attorney:
(i)    That the voter believes the principal bought and paid or secured payment for the capital stock with full consideration; or
(ii)    That, to the best of the voter’s knowledge and belief, the principal is the true owner of the capital stock, having received it by inheritance, bequest, survivorship, distribution, or gift.
(c)    This section does not prevent a stockholder from voting any share of capital stock that is pledged in good faith for a loan but has not been sold.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-312 - Debt Instruments

(a)    If the Commissioner approves, a commercial bank may issue and sell debt instruments that are repayable on the terms and bear the rate of interest, if any, stated in the instruments.
(b)    The issuance of a debt instrument does not impair the capital stock of a commercial bank if the amount of the debt instrument is represented by cash or sound assets that exceed the impairment determined by the Commissioner.
(c)    The holder of a debt instrument is not subject to any liability imposed on stockholders under any law of this State.
(d)    In the event of liquidation, a debt instrument is:
(1)    Subordinate to the claims of any depositor or creditor; and
(2)    Preferred to the claim of any stockholder.
(e)    (1)    Each holder of a debt instrument has the voting rights that the charter provides and the Commissioner approves.
(2)    A reference in this article to a required vote of the holders of the capital stock of a commercial bank includes holders of debt instruments to the extent that they are entitled to vote under this subsection.
(f)    Before a commercial bank retires or pays any debt instrument:
(1)    It shall obtain the approval of the Commissioner; and
(2)    Any existing deficit in its capital, disregarding any debt instrument to be retired, shall be paid in cash so that the sound capital assets of the commercial bank are at least equal to its capital stock.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-314 - Approval of Commissioner of Certain Stock Transactions

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Bank holding company” has the meaning stated in the Federal Bank Holding Company Act of 1956.
(3)    “Stock acquisition” means:
(i)    An acquisition of the outstanding voting stock of a commercial bank or bank holding company in this State, if the acquisition will affect the power to direct or to cause the direction of the management or policy of any banking institution or bank holding company; or
(ii)    An acquisition of any voting stock of a commercial bank, if the acquisition will give any one person control of 25 percent or more of the voting stock of the commercial bank.
(b)    Except as provided in this section, a person may not make a stock acquisition.
(c)    (1)    A person who intends to make a stock acquisition shall apply to the Commissioner for approval, at least 60 days before the acquisition becomes effective.
(2)    The application shall include:
(i)    A description of the proposed stock acquisition; and
(ii)    All other information that is available to inform the Commissioner of the effect of the acquisition on the power to direct or to cause direction of the management or policy of a banking institution or bank holding company.
(3)    If there is any doubt as to whether the stock acquisition will affect the power to direct or cause direction of the management or policy of a commercial bank or bank holding company, the doubt shall be resolved in favor of reporting to the Commissioner.
(d)    The Commissioner may deny approval for a stock acquisition that the Commissioner determines to be anticompetitive or to threaten the safety or soundness of a banking institution.
(e)    Voting stock that is acquired in violation of this section may not be voted for 5 years.
(f)    The provisions of this section do not apply to an acquisition for which an application is required under § 5-904 of this article.
2023 Maryland Statutes › Financial Institutions › Title 3 - Banking Institutions -- Commercial Banks › Subtitle 3 - Capital Stock; Surplus Requirements; Stockholders › Section 3-315 - Loans Secured by Stock

(a)    Except as provided in subsection (b) of this section, the chief executive officer of a commercial bank shall report to the Commissioner as soon as the officer becomes aware that any person has applied for or has received a loan from the commercial bank that is to be secured by 25 percent or more of the voting stock of any commercial bank.
(b)    This section does not apply if:
(1)    The loan applicant or borrower has been the owner of record of the stock for at least 1 year; or
(2)    The stock is stock of a newly organized but not yet opened commercial bank.
(c)    A report required by this section shall describe the loan transaction and contain whatever information is available to inform the Commissioner of the effect of the loan on the power to direct or cause direction of the management or policy of the commercial bank whose stock is involved.
(d)    The chief executive officer of a commercial bank may not knowingly:
(1)    Fail to make promptly a report required by this section; or
(2)    Make a report under this section that contains any statement that the officer knows to be false.