reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 3 - Deposits › Section 5-310 - Month and Year Account Opened to Appear on Checks; Exceptions

(a)    Any checks provided directly or indirectly by a banking institution or trust company for use in connection with a personal checking account shall have the numerical month and year in which the account was opened printed on the face of the checks, except as provided in subsection (b) of this section.
(b)    The provisions of subsection (a) of this section shall not apply under certain conditions:
(1)    If an individual personal checking account is closed at a particular bank and a joint personal account is opened at the same bank, that includes one of the customers who previously had the individual personal account, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the individual personal account was established.
(2)    If a joint personal account is closed at a particular bank and an individual personal account is opened at the same bank by one of the customers who previously was included under the joint account, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the joint account was established.
(3)    If a customer with an individual personal account or with a joint personal account opens an additional account at the same bank, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the initial account was established.
(4)    In the case of a personal checking account that is closed and a new personal checking account opened simultaneously on the advice of the bank, the checks for the new account shall have the numerical month and year in which the closed account was originally opened printed on the face of the checks.
(5)    If the closed account was opened prior to July 1, 1987, a date is not required to be printed on the checks.
(c)    A check, draft, or order provided on the opening of any personal checking account for use by the customer until printed checks have been prepared is not required to have the numerical month and year in which the account was opened printed on the face of the check, draft, or order.
(d)    (1)    The banking institution and the check printer may not be held liable for unintentional errors in the month and year printed on the face of the checks.
(2)    The customer may not be charged for the reprinting of the checks when the checks are reprinted due to error in the month and year printed on the face of the checks.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 4 - Affiliates and Bank Service Corporations › Section 5-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Affiliate” means any association, corporation, business trust, statutory trust, or other similar organization that:
(1)    Is not a bank service corporation and is controlled by a banking institution through:
(i)    Direct or indirect ownership or control of more than 50 percent of the voting rights;
(ii)    Control of the election of a majority of the management;
(iii)    Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the management;
(iv)    Directors of the banking institution constituting a majority of the management of the organization; or
(v)    Any direct or indirect control by stockholders of the banking institution, if the stockholders own or control:
1.    More than 50 percent of the voting rights in the banking institution; or
2.    More than 50 percent of the voting rights exercised at the last election of directors of the banking institution; or
(2)    Controls a banking institution through:
(i)    Direct or indirect ownership or control of more than 50 percent of the voting rights;
(ii)    Control of the election of a majority of the directors of the banking institution;
(iii)    Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the directors; or
(iv)    The holding of substantially all of the capital stock of the banking institution by trustees for stockholders of the organization.
(c)    “Bank service corporation” means a corporation:
(1)    At least some of the stock of which is owned by a banking institution; and
(2)    That is organized to perform bank service corporation activities of the type permitted under applicable provisions of Title 12 of the United States Code to a bank service corporation owned exclusively by national banking associations.
(d)    “Management” means the directors, trustees, or other persons exercising similar functions of an association, corporation, business trust, statutory trust, or other similar organization.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 4 - Affiliates and Bank Service Corporations › Section 5-402 - Scope of Subtitle

This subtitle does not:
(1)    Affect any affiliate, if the affiliation existed on June 1, 1935; or
(2)    Apply to a purchase by a banking institution of the stock of a small business investment company under the federal Small Business Investment Act of 1958, except that the value at which the purchased shares are carried on the books of the banking institution may not exceed 2 percent of its unimpaired capital and surplus.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 4 - Affiliates and Bank Service Corporations › Section 5-405 - Bank Service Corporation

(a)    Except as provided in this section, or otherwise expressly provided by State law, a banking institution may not have a bank service corporation.
(b)    If the Commissioner approves, a banking institution may have a bank service corporation.
(c)    On application of the banking institution, a bank service corporation shall be approved if:
(1)    The Commissioner determines that approval is:
(i)    Reasonably required to protect the welfare of the general economy of the State and of the banking institution; and
(ii)    Not detrimental to the public interest or to the banking institution;
(2)    The approval imposes the same conditions that federal law requires or permits as to a bank service corporation owned exclusively by national banking associations; and
(3)    The transaction complies with the rules, regulations, and conditions that the Commissioner adopts.
(d)    This section does not apply to any bank service corporation organized before July 1, 1984.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 4 - Affiliates and Bank Service Corporations › Section 5-407 - Bank Service Corporation -- Regulation

A banking institution may not permit any bank services to be performed for it, whether by contract or otherwise, unless the banking institution and the person performing the bank services give the Commissioner satisfactory assurances that the performance of the bank services will be subject to regulation and examination by the Commissioner to the same extent as if the banking institution itself were performing the bank services.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-503 - Investment in Real Property and Furnishings

(a)    A banking institution may buy and hold real property only as provided in this section.
(b)    (1)    Subject to the limitations in paragraph (3) of this subsection, a banking institution may buy or hold any real property that is necessary for the convenient transaction of its business.
(2)    In addition to its offices, this property may include:
(i)    A parking lot that the banking institution provides, with or without charge, primarily for the use of its customers; and
(ii)    Any rental space that is located in the bank building or on adjoining land.
(3)    Except as provided in paragraph (4) of this subsection, a banking institution may not invest in its bank building and furnishings more than an amount that equals 50 percent of its unimpaired capital and surplus or guaranty fund.
(4)    If a banking institution is rated CAMELS 1 or 2 and remains well capitalized in accordance with the requirements of the Federal Deposit Insurance Act, it may invest in its bank building and furnishings an amount equivalent to 75 percent of its:
(i)    Unimpaired capital, surplus, and undivided profits; or
(ii)    Guaranty fund and undivided profits.
(c)    (1)    Subject to the limitations in paragraphs (2) and (3) of this subsection, a banking institution may hold any real property that the banking institution acquires:
(i)    In satisfaction of a debt contracted in the course of its business; or
(ii)    At sale on a judgment, decree, or mortgage foreclosure under a security that it holds.
(2)    At a sale, a banking institution may not bid more than the amount of money that is necessary to satisfy the secured debts and costs.
(3)    A banking institution:
(i)    May not hold property acquired under this subsection for more than:
1.    8 years; and
2.    Under conditions that the Commissioner sets, 2 additional years; and
(ii)    Within 1 year after that period, shall:
1.    Sell the property; or
2.    Reduce the value of the property on its books to a value that the Commissioner approves.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-504 - Additional Banking Activities and Bank-Related Services Authorized

(a)    Notwithstanding any other provision of the laws or regulations of this State and subject to subsection (b) of this section, a banking institution may engage in any additional activity, service, or other practice in which, under federal law, national banking associations may engage subject to the same conditions that federal law requires or allows as to national banking associations.
(b)    (1)    A banking institution shall provide the Commissioner with written notice at least 45 calendar days before engaging in any activity, service, or other practice authorized under subsection (a) of this section.
(2)    The notice required under paragraph (1) of this subsection shall include a description of the proposed activity, service, or other practice, including:
(i)    The specific authority for the activity, service, or other practice; and
(ii)    Any condition that federal law requires or allows as to national banking associations.
(3)    The banking institution may begin to perform the activity, service, or other practice on the first business day after the 45th calendar day from the date the Commissioner receives the notice under paragraph (1) of this subsection unless the Commissioner:
(i)    Specifies a different date; or
(ii)    Prohibits the activity, service, or other practice.
(c)    The Commissioner may extend the 45–day period under subsection (b)(3) of this section if the Commissioner determines that the banking institution’s notice requires additional information or additional time for analysis.
(d)    The Commissioner may prohibit a banking institution from performing the activity, service, or other practice described in the notice provided under subsection (b) of this section if the Commissioner determines that performing the activity, service, or other practice would:
(1)    Adversely affect the safety and soundness of the banking institution;
(2)    Be detrimental to the welfare of the general economy of this State; or
(3)    Be detrimental to the public interest or to banking institutions.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-507 - Notice of Rejection of Application for Residential Mortgage

(a)    If a banking institution rejects an application for a residential mortgage loan, the banking institution shall give the applicant, at the applicant’s request, written notice of the rejection.
(b)    The applicant may use this written notice as evidence of rejection for purposes of the Maryland Home Financing Program.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-508 - Elimination of Mortgage Insurance Charge When Principal Reduced

If a banking institution holds a first mortgage on residential property and a private mortgage insurance corporation partially insures the mortgage, the banking institution shall eliminate all charges to the mortgagor for mortgage insurance premiums when the mortgage is reduced to the level at which the federal Homeowners Protection Act of 1998 requires termination of the private mortgage insurance insuring the mortgage.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-509 - Federal Deposit Insurance Corporation and Reserve System Memberships

(a)    Each banking institution shall be a member of the Federal Deposit Insurance Corporation unless the institution is not in the business of accepting deposits or retaining funds in a deposit account. A banking institution is not in the business of accepting deposits if it accepts a deposit as a trustee or custodian and is not in the business of retaining deposits if the deposits do not remain in a deposit account of the institution for more than two consecutive banking days. Any institution which is not in the business of accepting deposits or retaining funds in a deposit account as defined in this section shall not be bound by the provisions of § 5–403(c)(2) of this title.
(b)    If approved by a majority of its directors, a banking institution may:
(1)    Become and participate as a member of the Federal Reserve System; or
(2)    Withdraw from the system.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-511 - Multiple Directorships

(a)    Banking institutions may not have common directors unless the Commissioner finds that a common directorship is in the public interest and not detrimental to either banking institution.
(b)    (1)    An individual who now is a director of more than one banking institution may complete the term of office of each directorship and may be reelected to each directorship.
(2)    This section does not prohibit any person from being an officer, employee, director, or trustee of a mutual holding company and its subsidiary savings bank, shares of which are owned by the same mutual holding company.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-512 - Loans to Directors, Officers, or Employees

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Commercial loan” means a loan that is made:
(i)    Solely to acquire or carry on a business or commercial enterprise; or
(ii)    To any business or commercial organization.
(3)    “Consumer loan” means a loan that is made primarily for personal, family, or household purposes.
(4)    “Executive officer” has the meaning stated in Title 12 of the Code of Federal Regulations, § 215.2.
(b)    Unless the loan is approved or exempted from approval as provided in this section, the following persons may not borrow, directly or indirectly, any money from a banking institution:
(1)    Any director, officer, or employee of the banking institution;
(2)    Any partnership of which the director, officer, or employee is a member; or
(3)    Any corporation in which the director, officer, or employee is an officer or owns the majority interest.
(c)    This section does not require approval of:
(1)    A commercial loan that is made to:
(i)    A director of the banking institution, unless the director also is an officer or employee of the banking institution;
(ii)    A partnership of which the director is a member, unless an officer or employee of the banking institution also is a member of that partnership; or
(iii)    A corporation in which the director holds any interest, unless an officer or employee of the banking institution is an officer or owns the majority interest in that corporation; or
(2)    A loan that is:
(i)    A consumer loan; and
(ii)    Is made to an employee of a banking institution who is not an executive officer or director of the banking institution.
(d)    (1)    A loan to a director, officer, or employee of a banking institution may be made only if the loan has been approved by a resolution adopted at and recorded in the minutes of a meeting of:
(i)    The board of directors of the banking institution; or
(ii)    The executive committee of the banking institution, if that committee is authorized to make loans.
(2)    If a loan is approved by an executive committee, the loan approval shall be reported to the board of directors at its next meeting.
(e)    (1)    A loan made under this section shall be reviewed every 6 months by the board of directors.
(2)    The loan may not be renewed or extended unless the renewal or extension has been approved by a resolution adopted at a meeting of the board of directors and recorded in the minutes of the meeting.
(f)    All loans to a director, officer, or employee of a banking institution are subject to the limitations imposed by § 3-601 of this article.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 5 - Miscellaneous Regulations › Section 5-513 - Return of Checks for Customers With Truncated Checking Accounts

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Check” means a draft that is drawn on a banking institution and payable on demand.
(3)    “Check facsimile” means a copy of an original check reproduced through photographic, photostatic, microfilm, microcard, miniature photographic, optical imaging, electronic, digital, magnetic, wireless, electromagnetic, or other process that accurately reproduces or forms a durable medium for reproducing the original check.
(4)    “Draft” has the meaning stated in § 3-104 of the Commercial Law Article.
(5)    “Truncated account” means a checking, negotiable order of withdrawal, or similar deposit account for which the original checks drawn on the account are not returned to the customer on a regular basis.
(b)    (1)    (i)    On request of a customer with a truncated account, a banking institution shall return any check the customer requires for tax audits or litigation or in connection with campaign finance reporting requirements under the Election Law Article, at no cost to the customer.
(ii)    If a banking institution returns check facsimiles instead of original checks to a customer under subparagraph (i) of this paragraph, on request of the customer, the banking institution shall return to the customer, at no additional cost to the customer, check facsimiles of the front and the back of the customer’s original checks that are at least the same size as the customer’s original checks.
(2)    Subject to the requirements of subsection (c)(1) and (2) of this section, in all other instances, on request of a customer with a truncated account, the banking institution shall return a maximum of 2 checks per month, at no cost to the customer.
(3)    A banking institution required to return a check to a customer under this subsection may return a check facsimile instead of the original check.
(c)    (1)    On request of a customer with a truncated account under which the customer does not receive check facsimiles on a regular basis, a banking institution shall return to the customer on a regular basis, at the banking institution’s option, either the customer’s original checks or check facsimiles of the front of the customer’s original checks.
(2)    On request of a customer with a truncated account under which the banking institution returns check facsimiles on a regular basis, a banking institution shall return to the customer on a regular basis, at no additional cost to the customer, check facsimiles of the front of the customer’s original checks that are at least the same size as the customer’s original checks.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-601 - When Commissioner May Take Charge -- Banking Institutions

(a)    The board of directors of any banking institution may place the banking institution, including its property, records, and business, in the hands of the Commissioner by posting on the front door of each banking office of the institution a notice that states: “This institution is in the hands of the Maryland Commissioner of Financial Regulation”.
(b)    The banking institution immediately shall notify the Commissioner of its action, and the Commissioner immediately shall take possession of the institution.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-602 - When Commissioner May Take Charge -- Commercial Banks

(a)    (1)    If the Commissioner finds that the capital stock account of any commercial bank is impaired because of a loss or for any other reason, the Commissioner, by notice to the board of directors of the commercial bank, may require the commercial bank to correct the impairment.
(2)    If the commercial bank fails to correct the impairment within 3 months after the board receives the notice, the Commissioner may take possession of the commercial bank, including its property, records, and business.
(b)    (1)    If the reserves of any commercial bank fall below the amount required under this article:
(i)    The commercial bank may not increase its loans or discounts until the deficiency is corrected, except by discounting or buying drafts payable at sight or on demand; and
(ii)    The Commissioner, by notice to the board of directors of the commercial bank, shall require the commercial bank to correct the deficiency.
(2)    If the commercial bank fails to correct the deficiency within 30 days after the board receives the notice, the Commissioner may take possession of the commercial bank, including its property, records, and business.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-602.1 - When Commissioner May Take Charge -- Nondepository Trust Company

(a)    In this section, “insolvent” means:
(1)    Incapable of meeting the demands of creditors; or
(2)    Having liabilities that exceed assets.
(b)    Notwithstanding the notice and timing requirements in § 5–602 of this subtitle, if the Commissioner determines that a nondepository trust company is insolvent, the Commissioner may take immediate possession of the nondepository trust company, including its property, records, and business, by:
(1)    Posting on the front door of each banking office of the nondepository trust company a notice that states: “This institution is in the hands of the Maryland Commissioner of Financial Regulation”; and
(2)    Immediately delivering written notice to the board of directors of the nondepository trust company that the Commissioner has taken possession of the nondepository trust company.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-604 - Notice of Possession by Commissioner

After the Commissioner takes possession of a banking institution, the Commissioner promptly shall give notice of that fact to:
(1)    Each person who has any asset of the institution; and
(2)    The general public, by notice published in an appropriate newspaper.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-604.1 - Payment of Expenses Related to Possession of Nondepository Trust Company

(a)    All necessary and reasonable expenses of the Commissioner that are court approved and related to the Commissioner’s possession of a nondepository trust company, including costs associated with the receivership, reorganization, or liquidation of the nondepository trust company, shall be paid from the assets of the nondepository trust company, the proceeds of the sale of securities pledged under § 3–211.1 of this article, or recovery against a surety bond delivered under § 3–211.1 of this article.
(b)    Any proceeds of a sale of pledged securities that remain after making the payments required under subsection (a) of this section and § 5–606(b)(2) of this subtitle shall be an asset of the nondepository trust company.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-605 - Appointment of Receiver

(a)    Within a reasonable time after the Commissioner takes possession of a banking institution, the Commissioner, in the name of this State, shall petition an equity court in the county where the banking institution has its principal banking office to:
(1)    Take jurisdiction over the banking institution; and
(2)    Subject to subsection (b) of this section, appoint as receiver:
(i)    An examiner; or
(ii)    The Federal Deposit Insurance Corporation.
(b)    (1)    The Commissioner may petition for appointment of the Federal Deposit Insurance Corporation as receiver only of a banking institution that the Corporation insures.
(2)    Appointment of the Federal Deposit Insurance Corporation becomes effective when the Corporation files with the court and the court approves a certificate of acceptance.
(c)    A receiver shall provide any bond that the court requires.
(d)    If an examiner is appointed receiver, the examiner:
(1)    May not receive further compensation for services as receiver; but
(2)    Subject to order of the court, is entitled to reimbursement for expenses for legal and clerical help and travel.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-606 - Powers and Duties of Receiver

(a)    (1)    The receiver may appoint any clerks needed to carry out the receivership.
(2)    The salaries of these clerks shall be paid out of the funds of the banking institution.
(b)    (1)    Notwithstanding subsection (a) of this section, the receiver of a nondepository trust company may, as needed to carry out the receivership:
(i)    Appoint any clerks, agents, counsel, employees, and assistants; and
(ii)    Retain officers and employees of the nondepository trust company.
(2)    The salaries and all other expenses of the individuals specified under paragraph (1) of this subsection that are court approved shall be paid from the assets of the nondepository trust company, the proceeds of the sale of securities pledged under § 3–211.1 of this article, or recovery against a surety bond delivered under § 3–211.1 of this article.
(3)    Any proceeds of a sale of pledged securities that remain after making the payments required under paragraph (2) of this subsection and § 5–604.1(a) of this subtitle shall be an asset of the nondepository trust company.
(c)    The receiver may borrow money and, with the approval of the court, pledge, mortgage, or encumber any of the institution’s assets to:
(1)    Pay the obligations of the institution;
(2)    Pay dividends to the depositors or creditors of the institution; or
(3)    Enable the institution to reopen or reorganize.
(d)    (1)    The receiver shall file with the court, in the form that the court requires, an itemized account of:
(i)    All receipts, disbursements, and expenses; and
(ii)    Any proposed distribution.
(2)    The court shall accept the account to the same extent as if an auditor of the court had prepared and filed the account.
(e)    (1)    Except as provided in paragraph (2) of this subsection, the receiver may not make any distribution until the court ratifies the receiver’s account.
(2)    With the approval of the court, the receiver may pay in full each creditor whose total claims do not exceed $5.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-607 - Deposits Made by Receiver

(a)    All money received by the receiver shall be deposited to the receiver’s credit in any bank or trust company that the receiver chooses.
(b)    (1)    To safekeep and to secure payment of the money deposited with it, the depository bank or trust company shall deposit with the office of the Commissioner general obligations of or obligations guaranteed by the federal government, this State, or any of its political subdivisions.
(2)    These obligations shall be valued at the lower of market value or par value, and their value always shall be at least equal to the deposits of the receiver in the bank or trust company.
(c)    The receiver may waive this requirement for obligations for any money remaining more than 6 months after the dividend checks are mailed to the creditors and depositors.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-611 - Plan of Reorganization -- Proposal

(a)    The board of directors or the depositors representing not less than 25 percent of the deposit liability of any banking institution that is in the possession of a receiver may:
(1)    Propose a plan of reorganization for the reorganization and reopening of the banking institution or for the establishment of a new State banking institution, national banking association, or other corporation that they consider necessary; and
(2)    Choose a committee to represent them to carry out the plan.
(b)    (1)    The plan for reorganization of a commercial bank may provide for:
(i)    The voluntary surrender or exchange of all or part of the outstanding capital stock of the commercial bank and the resale of that stock;
(ii)    The sale of additional authorized stock;
(iii)    The voluntary subscription or contribution by depositors and creditors to a guaranty fund; and
(iv)    Any other protection for the depositors and creditors.
(2)    The plan for reorganization of a savings bank may provide only for the voluntary subscription or contribution by depositors and creditors to a guaranty fund.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-613 - Plan of Reorganization -- Consent of Political Subdivisions

With the consent of the local governing body of any political subdivision that has money deposited with a banking institution, its treasurer or similar fiscal officer may:
(1)    Consent to a plan of reorganization proposed under this subtitle; and
(2)    Bind the political subdivision to limit withdrawals from the institution as provided in the plan.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-614 - Rights of Federal Deposit Insurance Corporation

(a)    If the Federal Deposit Insurance Corporation is receiver of a banking institution, the Corporation may:
(1)    Operate the trust department of the institution; and
(2)    Liquidate the institution as provided in this subtitle or under federal law.
(b)    (1)    This subsection applies whether or not the Federal Deposit Insurance Corporation is the receiver of the banking institution.
(2)    If the Federal Deposit Insurance Corporation pays the insured deposit liabilities of a banking institution, it is subrogated to the rights of the depositors against the institution to the same extent as it would be subrogated to the rights of the depositors against a closed national banking association under federal law.
(3)    The rights of the depositors and creditors of the banking institution are governed by the laws of this State.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 6 - Reorganizations › Section 5-615 - Preference for Property Held in Fiduciary Capacity

In the distribution of the general assets of a trust company that is liquidated or reorganized, the person who succeeds the trust company as a personal representative, guardian, trustee, receiver, or other fiduciary has a preference for all debts and accounts that are due to or held by it as fiduciary over all other debts and liabilities, including salaries and wages of employees.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 7 - Bank Holidays › Section 5-701 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Federal holiday” means, as to each corresponding legal holiday, the date that the federal government designates for observance of the holiday.
(c)    “Optional bank holiday” means a day on which a banking institution is authorized to be closed.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 7 - Bank Holidays › Section 5-703 - Required Business Days

(a)    Except as provided in subsection (b) of this section, a banking institution shall be open for business on each day during the year except for the days on which the banking institution is required or authorized by this subtitle to be closed.
(b)    The Commissioner may approve the operation of a branch that is open for business fewer days than described in subsection (a) of this section if the Commissioner determines that:
(1)    The branch will serve a customer base or community that has unique banking needs;
(2)    At least 1 other branch of the banking institution is open for business as described in subsection (a) of this section; and
(3)    The operation of the branch will not be detrimental to the public interest or to banking institutions.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 7 - Bank Holidays › Section 5-705 - Legal Holidays

(a)    (1)    Subject to paragraph (2) of this subsection, each banking institution shall be closed on the following legal holidays:
(i)    New Year’s Day;
(ii)    Dr. Martin Luther King, Jr.’s Birthday;
(iii)    Washington’s Birthday;
(iv)    Good Friday;
(v)    Memorial Day;
(vi)    Independence Day;
(vii)    Labor Day;
(viii)    Columbus Day;
(ix)    Veterans’ Day;
(x)    Thanksgiving Day; and
(xi)    Christmas Day.
(2)    (i)    When a legal holiday differs from the corresponding federal holiday, a banking institution:
1.    May be closed on both holidays; and
2.    Shall be closed on one of the holidays.
(ii)    When there is no corresponding federal holiday for a legal holiday listed in paragraph (1) of this subsection, a banking institution:
1.    May be closed on the legal holiday; or
2.    May remain open on the legal holiday.
(b)    (1)    Each legal holiday that is not listed in subsection (a) of this section is an optional bank holiday.
(2)    When, as to any optional bank holiday, the legal holiday differs from the corresponding federal holiday, a banking institution may be closed on:
(i)    Both holidays;
(ii)    The legal holiday; or
(iii)    The federal holiday.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 7 - Bank Holidays › Section 5-707 - Emergencies

(a)    In this section, “emergency” has the meaning stated in § 14-307 of the Public Safety Article.
(b)    (1)    If the Governor proclaims that an emergency exists in a political subdivision and designates days for the general cessation of business in the subdivision, each banking office that is located within the subdivision shall be closed on those days.
(2)    If the Governor proclaims that an emergency exists in a political subdivision, the Governor may designate days on which each banking office that is located within the subdivision may be closed.
(3)    If the Governor proclaims that an emergency exists as to a particular banking office, that office may be closed on those days that the Governor designates.
(4)    When the Governor authorizes, but does not require, the banking institution to be closed, the chairman of its board of directors or its president shall decide whether to close or remain open.
(c)    (1)    If an emergency exists and affects a banking institution and if it is not practical to obtain a proclamation from the Governor before closing the affected institution, the chairman of its board of directors or its president:
(i)    May close the banking institution; and
(ii)    As soon as possible, but within 24 hours after the closing, shall notify the Governor of the reasons for the closing.
(2)    A banking institution may be closed under this subsection until the earlier of:
(i)    Issuance by the Governor of a proclamation that relates to the emergency closing;
(ii)    Notice to the banking institution that the Governor will not issue a proclamation;
(iii)    Reopening of the banking institution by the chairman of its board of directors or by its president; or
(iv)    5 p.m. on the third day after the closing, except for Saturdays, Sundays, and legal holidays.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-801 - Removal of Director or Officer for Unsafe or Unsound Practices

(a)    If the Commissioner believes that a director or officer of a banking institution has engaged in an unsafe or unsound banking practice, the Commissioner shall send a warning to the director or officer.
(b)    (1)    If the Commissioner finds that the director or officer has continued to engage in the unsafe or unsound practice, the Commissioner may report the facts to the Secretary of Labor and the Attorney General.
(2)    A copy of the report shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to each director of the banking institution.
(c)    (1)    After giving the officer or director an opportunity to be heard, if the Commissioner finds that the unsafe or unsound practice continued after the warning, the Commissioner with the approval of the Secretary of Labor may remove the officer or director.
(2)    A copy of the removal order shall be served on the individual removed and the banking institution.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-802 - Violations of Law

(a)    If the Commissioner believes that a banking institution or any of its directors, officers, trustees, managers, agents, or employees has violated any provision of this article that relates to the institution, the Commissioner immediately shall report the violation to the Secretary of Labor, who shall ask the Attorney General to take the appropriate steps to institute a prosecution for the violation.
(b)    (1)    The Commissioner shall send a warning to a director or officer of a banking institution who the Commissioner believes has violated any provision of this article that relates to the institution.
(2)    If, after the warning, the director or officer continues to violate the law, the director or officer may be removed as provided in § 5–801 of this subtitle.
(c)    Unless another penalty specifically is provided elsewhere in this article, any banking institution and any director, officer, trustee, manager, agent, or employee of a banking institution who violates any provision of this article that relates to the institution is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-803 - False Records

(a)    An officer, director, or employee of a bank, trust company, or savings bank may not willfully and knowingly make or cause to be made a false statement or false entry in its records or, with the intent to deceive a person authorized to examine the affairs of the bank, trust company, or savings bank, sign or exhibit false records.
(b)    Any officer, director, or employee who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-804 - Acceptance of Deposits for Insolvent Institution

(a)    An officer or employee of a banking institution may not accept a deposit knowing that the institution is insolvent.
(b)    An officer or employee who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to imprisonment in the State Penitentiary for a period not exceeding 3 years.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-805 - Derogatory Statements

(a)    A person may not willfully make, circulate, or send to another any untrue statement that is derogatory to the financial condition or affects the solvency or financial standing of any bank, trust company, or savings bank doing business in this State or counsel, aid, procure, or induce another to make, circulate, or send to another such a statement.
(b)    Any person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 3 years.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-806 - Unauthorized Representation as Bank or Savings and Loan Association

(a)    Except for a bank, trust company, savings bank, or savings and loan association that is authorized to do business in this State, a person may not use any name, title, or other words that represent that the person is authorized to do the business of banking in this State.
(b)    (1)    (i)    In this subsection the following terms have the meanings indicated.
(ii)    1.    “Bank” means any bank, trust company, savings bank, or savings and loan association that is authorized to do business in this State, and any subsidiary or affiliate of the entity.
2.    “Bank” includes any Farm Credit System  institution in this State.
(iii)    “Name” means the name, trade name, trademark,  service mark, logo, or tagline used by a bank to identify itself.
(2)    Except with the consent of the bank, a person may not use the name of a bank or any term or design that is similar to the name of a bank in any marketing material provided to another person or in any solicitation of another person in a manner  that may cause a reasonable person to be confused, mistaken, or deceived that the marketing material or solicitation:
(i)    Originated from the bank;
(ii)    Originated from someone affiliated, connected, or associated with the bank;
(iii)    Is approved or sponsored by the bank; or
(iv)    Is the responsibility of the bank.
(c)    In addition to any other remedies a bank may have under any other provision of law, a bank that is affected by a violation of subsection (b) of this section may bring an action against the person that committed the violation to recover:
(1)    Actual damages sustained as a result of the violation;
(2)    Either:
(i)    All profits attributable to the violation; or
(ii)    $1,000 for each violation; and
(3)    Court costs and reasonable attorney’s fees.
(d)    Any person who violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-807 - Anticompetitive, Unfair, or Deceptive Practices

(a)    A banking institution may not:
(1)    Issue an advertisement or make a representation that is false, misleading, or deceptive;
(2)    Impose as a condition for a loan any 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 any restriction on obtaining credit, property, or service from a competitor; or
(4)    Engage in an act or practice that is anticompetitive, unfair, deceptive, or injurious to public interest.
(b)    The Commissioner may further define specific acts or practices that are anticompetitive, unfair, deceptive, or injurious to the public interest.
(c)    A banking institution and any director, officer, trustee, manager, agent, or employee of a banking institution who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-808 - Cease and Desist Orders

(a)    The Commissioner may order any banking institution to cease and desist from:
(1)    An unsafe or unsound banking practice;
(2)    A practice that is injurious to the public interest; or
(3)    A violation of a law, rule, or regulation that relates to the Commissioner’s supervision of the institution.
(b)    To protect depositors, stockholders, or the public, the Commissioner may include in a cease and desist order a restriction on the withdrawal of money from any banking institution.
(c)    The Commissioner may include in a cease and desist order a requirement that the officers or directors of a banking institution act affirmatively to correct any violation or practice.
(d)    (1)    Before a cease and desist order takes effect, the Commissioner shall give the banking institution an opportunity for a hearing.
(2)    Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.
(e)    If the Commissioner determines that the violation or practice under subsection (a) of this section requires immediate action to protect depositors, stockholders, or the public, the Commissioner:
(1)    May issue a cease and desist order that is effective on service; and
(2)    Shall give the banking institution an opportunity for a hearing to rescind the order.