reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-808.1 - Cease and Desist Orders -- Civil Penalty

(a)    After notice and a hearing, the Commissioner may assess a civil penalty against a banking institution that the Commissioner determines has:
(1)    Violated a cease and desist order issued by the Commissioner under § 5–808 of this subtitle; or
(2)    Engaged in:
(i)    An unsafe or unsound banking practice; or
(ii)    A practice that is injurious to the public interest.
(b)    The civil penalty may not exceed:
(1)    $1,000 per violation; and
(2)    $1,000 per violation for each day that the violation continues.
(c)    (1)    A civil penalty shall be assessed by written notice of assessment served on the person to be assessed.
(2)    The notice of assessment shall state the:
(i)    Amount of the civil penalty;
(ii)    Legal authority for the assessment; and
(iii)    Matters of fact or law constituting the grounds for the assessment.
(3)    The notice of assessment shall constitute a final order for purposes of judicial review pursuant to § 10–221 of the State Government Article.
(d)    In determining the amount of the civil penalty to be assessed, the Commissioner shall consider:
(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 banking industry;
(5)    The assets of the violator; and
(6)    Any other factors relevant to the determination of the civil penalty.
(e)    (1)    A civil penalty assessed under this section shall be due and payable within 30 days after the Commissioner issues the notice of assessment.
(2)    The Commissioner may reduce or set aside a civil penalty.
(f)    The Commissioner shall pay all civil penalties collected under this section into the General Fund of the State.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-808.2 - Closed Hearing in Extraordinary Circumstances

(a)    In this section, “extraordinary circumstances” means a situation presenting specific concerns about the prompt withdrawal of money from, or the safety and soundness of, a banking institution.
(b)    In extraordinary circumstances and with the consent of the banking institution, the Commissioner may close to the public a hearing concerning the assessment of a civil penalty, an order to cease and desist, or any other formal enforcement action by the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 8 - Prohibited Activities; Penalties › Section 5-809 - Injunction

On application by the Commissioner, a court of competent jurisdiction may issue an injunction to restrain a banking institution 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.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-903 - Prohibited Acquisitions; Notice to Commissioner

(a)    Except as otherwise expressly permitted by federal law, no bank holding company may acquire a Maryland bank holding company or a Maryland bank without the approval of the Commissioner.
(b)    The prohibition in subsection (a) of this section shall not apply where the acquisition is made:
(1)    Solely for the purpose of facilitating an acquisition otherwise permitted under this subtitle;
(2)    In a transaction arranged by the Commissioner or another bank supervisory agency to prevent the insolvency or closing of the acquired bank; or
(3)    In a transaction in which a bank forms its own bank holding company, if the ownership rights of the former bank shareholders are substantially similar to those of the shareholders of the new holding company.
(c)    In a transaction for which the Commissioner’s approval is not required under this section, the parties shall give written notice to the Commissioner at least 15 days before the effective date of the acquisition.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-904 - Application for Acquisition; Forms for Applications, Notice, and Reports

(a)    A bank holding company that proposes to make an acquisition under this subtitle shall:
(1)    File with the Commissioner an application in the form that the Commissioner requires;
(2)    Pay to the Commissioner an application fee of $1,500; and
(3)    Submit proof that the applicant has complied with all public notice and publication requirements applicable under the Bank Holding Company Act.
(b)    To the extent consistent with the effective discharge of the Commissioner’s responsibilities, the forms established under this subtitle for application, notice, and reporting shall conform to those established under the Bank Holding Company Act.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-905 - Approval of Application -- Factors Considered; Limitations

(a)    In deciding whether to approve an application under § 5-904 of this subtitle, the Commissioner shall consider whether the acquisition:
(1)    May be detrimental to the safety and soundness of the Maryland bank or Maryland bank holding company to be acquired; or
(2)    May result in an undue concentration of resources or a substantial reduction of competition in the State.
(b)    Except as provided in this section, the Commissioner may not approve an acquisition if on consummation of the transaction the applicant, including any insured depository institution affiliate of the applicant, would control 30 percent or more of the total amount of deposits of insured depository institutions in the State.
(c)    The Commissioner may by regulation adopt a procedure by which the 30 percent deposit limit may be waived for good cause.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-906 - Approval of Application -- Time Limits

(a)    The Commissioner shall decide whether to approve an application under § 5-904 of this subtitle within 60 days of receipt of a completed application.
(b)    An application shall be deemed approved if the Commissioner takes no action on the application within the time limits specified in this section.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-907 - Reports

(a)    To the extent specified by the Commissioner by regulation or written request, each bank holding company that controls a Maryland bank or a Maryland bank holding company shall submit to the Commissioner:
(1)    Copies of reports filed for the preceding calendar year with a bank supervisory agency by each Maryland bank controlled by the bank holding company; and
(2)    A report specifying as of the end of the preceding calendar year, for each branch of each Maryland bank controlled by the bank holding company:
(i)    The location; and
(ii)    The amount of deposits held.
(b)    The reports specified in subsection (a) of this section:
(1)    May consist of a copy of a report filed with another bank supervisory agency that contains substantially similar information; and
(2)    May not be requested by the Commissioner unless the Commissioner determines that the information is not available from another bank supervisory agency.
(c)    At the request of the Commissioner, to the extent permitted by applicable State or federal law, each bank holding company that controls a Maryland bank or a Maryland bank holding company shall provide to the Commissioner copies of reports of examination prepared by any bank supervisory agency in connection with the examination of any Maryland bank.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 9 - Bank Holding Companies › Section 5-910 - Severability

If any provision of this subtitle or the application thereof to any person or circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity does not affect other provisions or any other application of this subtitle that can be given effect without the invalid provision or application.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1001 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Affiliate” means any company that controls, is controlled by, or is under common control with another company.
(c)    “Bank” has the meaning stated in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(a)(1).
(d)    “Bank supervisory agency” means:
(1)    The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or any successor to these agencies; or
(2)    An agency of another state with primary responsibility for chartering and supervising banks.
(e)    (1)    “Branch” means a bank office open to the public at which deposits are received, checks are paid, or money is lent.
(2)    “Branch” includes a mobile branch or other special-purpose facility that performs a function of a branch.
(3)    “Branch” does not include an automated teller machine as defined in § 1-401 of this article.
(f)    “Commercial activities” means activities in which a bank holding company, a financial holding company, a national bank, or a national bank financial subsidiary may not engage under federal law.
(g)    “De novo branch” means a branch of an out-of-state bank or banking institution that:
(1)    Is originally established by the out-of-state bank or banking institution as a branch; and
(2)    Does not become a branch of the out-of-state bank or banking institution as a result of:
(i)    The acquisition by the out-of-state bank or banking institution of an insured depository institution or a branch of an insured depository institution; or
(ii)    The conversion, merger, or consolidation of an insured depository institution or a branch of an insured depository institution.
(h)    “Home state” means:
(1)    As to a national banking association, the state in which its main office is located; and
(2)    As to a state-chartered bank, the state by which it is chartered.
(i)    “Home state regulator” means the agency in a bank’s home state with primary responsibility for chartering and regulating banks.
(j)    “Host state” means a state, other than the home state of a bank, in which the bank maintains or seeks to establish a branch.
(k)    “Insured depository institution” means any financial institution the deposits of which are insured by the Federal Deposit Insurance Corporation.
(l)    “National banking association” means a bank chartered under the National Bank Act.
(m)    “Other-state bank” means a bank chartered and primarily regulated by another state.
(n)    “Out-of-state bank” means:
(1)    A national banking association with its main office in a state other than this State; or
(2)    An other-state bank.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1003 - Establishment of Branch -- in Maryland

(a)    A banking institution or an out–of–state bank may establish a branch in this State by:
(1)    Subject to subsection (b) of this section, opening a de novo branch;
(2)    Purchasing an existing branch from a bank or an insured depository institution; or
(3)    Converting former headquarters or retaining former branches following:
(i)    The purchase of all or substantially all of the assets of a bank or an insured depository institution; or
(ii)    A merger or a consolidation with a bank or an insured depository institution.
(b)    An out–of–state bank may establish a de novo branch in this State under subsection (a)(1) of this section only if the home state of the out–of–state bank allows a banking institution to open a de novo branch in its state.
(c)    A banking institution or an out–of–state bank may not establish or maintain a branch in this State on the premises or property of an affiliate if the affiliate engages in commercial activities.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1005 - Establishment of Branch -- Prerequisites

(a)    Except as provided in subsection (b) of this section, a banking institution that proposes to establish a branch in this State or in another state shall:
(1)    File with the Commissioner, at least 30 days before the intended opening date, a notice of intention to open a branch; and
(2)    Submit to the Commissioner any information the Commissioner requires in order to evaluate the proposed branch.
(b)    A well–capitalized banking institution with a composite CAMELS rating of one or two may establish a branch in this State by filing with the Commissioner an expedited notice, in the form that the Commissioner requires, at least 30 days before the intended opening date.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1006 - Approval of Branch -- Considerations

(a)    Subject to subsection (b) of this section, in deciding whether to approve a branch of a banking institution, the Commissioner shall consider:
(1)    If the branch is to be established in this State, whether the establishment of the branch will promote the public convenience;
(2)    Whether the applicant has sufficient capital to support the branch; and
(3)    Whether the applicant is generally operating in compliance with the provisions of this article.
(b)    (1)    Subject to paragraph (2) of this subsection, a well–capitalized banking institution with a composite CAMELS rating of one or two may open a branch in this State without the approval of the Commissioner 30 days after filing an expedited notice for the proposed branch under § 5–1005(b) of this subtitle.
(2)    The Commissioner may:
(i)    Require the submission of additional information regarding the proposed establishment of a branch during the 30–day period that the expedited notice is pending; and
(ii)    Prohibit the establishment of the branch within the 30–day period if the Commissioner determines that establishment of the branch is not consistent with the standards set forth in subsection (a) of this section.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1007 - Approval of Branch -- Time Limitations

(a)    The Commissioner shall decide whether to approve the establishment of a branch of a banking institution within 30 days of receipt of the notice specified in § 5-1005 of this subtitle.
(b)    A branch shall be deemed approved if the Commissioner takes no action on the notice within the time limit specified in this section.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1008 - Powers and Rights of Branches; Engaging in Business With Banks

(a)    A banking institution that establishes a branch in another state may exercise at that branch all powers and rights permitted to banks in that state unless the Commissioner determines that the exercise of a power or right would threaten the safety and soundness of the banking institution.
(b)    An other-state bank that establishes a branch in this State may exercise at the branch all powers and rights permitted to banking institutions in this State notwithstanding any other law of this State to the contrary, unless that bank’s home state regulator determines that the exercise of a power or right would threaten the safety and soundness of the other-state bank.
(c)    Any person authorized by a law of this State to engage in business with banks located in this State, including the making of deposits, is authorized to engage in the same business with an other-state bank at that other-state bank’s branch in this State.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1009 - Examinations and Supervision

(a)    Subject to § 5-1012 of this subtitle, the Commissioner shall have the power to examine every branch of an other-state bank located in this State for the same purposes and to the same extent as the Commissioner may examine a branch of a banking institution.
(b)    The Commissioner may enter into agreements with bank supervisory agencies regarding the scope, timing, coordination, and frequency of examinations and other supervisory matters, including the sharing of information obtained through examination of other-state banks that maintain branches in this State.
(c)    Supervisory and examination fees related to the Commissioner’s oversight of Maryland branches of other-state banks and branches of banking institutions in other states may be imposed and shall be calculated in the manner agreed to between the Commissioner and the home state regulators.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1010 - Enforcement Actions

(a)    Subject to § 5-1012 of this subtitle, if the Commissioner finds that a branch of an other-state bank in this State is being operated in an unsafe or unsound manner or there is any violation of Maryland law by the branch of the other-state bank, the Commissioner may undertake enforcement actions as otherwise authorized under provisions in this article governing banking institutions.
(b)    The Commissioner may enter into joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over an other-state bank that has a branch in this State.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1011 - Reports of Condition and Income

Subject to § 5-1012 of this subtitle, the Commissioner may require a bank that maintains a branch in this State to submit to the Commissioner its consolidated reports of condition and income in the form specified by the Federal Financial Institutions Examination Council.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1012 - Cooperation With Other State or Federal Regulators

With respect to the supervision, enforcement, and reporting requirements of §§ 5-1009, 5-1010, and 5-1011 of this subtitle, the Commissioner shall act primarily in cooperation with the home state regulator or federal regulator of the affected out-of-state bank.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1013 - Transactions Resulting in 30 Percent or More Control of Deposits

(a)    Except as provided in this section, the Commissioner may not approve a transaction resulting in the establishment of a branch or branches by a bank, other than a de novo branch, if on consummation of the transaction the applicant, including any insured depository institution affiliate of the applicant, would control 30 percent or more of the total amount of deposits of insured depository institutions in this State.
(b)    The Commissioner may by regulation adopt a procedure by which the 30 percent deposit limit may be waived for good cause.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1014 - Out-of-State Banks

(a)    An out-of-state bank that proposes to establish a branch in this State:
(1)    Shall qualify under § 7-203 of the Corporations and Associations Article to do business in the State as a foreign corporation; and
(2)    Within 15 days of filing a branch application with the appropriate bank supervisory agency, shall provide the Commissioner with a copy of the branch application.
(b)    An out-of-state bank that does not have a branch in this State on September 29, 1995, may not establish a branch in this State before June 1, 1997, unless the laws of that bank’s home state would permit a banking institution to establish a branch in that state under substantially similar conditions as those imposed by this subtitle.
(c)    An out-of-state bank that has a branch in this State may establish additional branches in this State to the same extent as a banking institution or to the extent otherwise permitted by federal law.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 10 - Branch Banking › Section 5-1015 - Severability

If any provision of this subtitle or the application thereof to any person or circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity does not affect other provisions or any other application of this subtitle that can be given effect without the invalid provision or application.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Acquire” means to assume ownership or control, directly or indirectly, of any voting shares of, interest in, or all or a substantial portion of the assets and liabilities, including, unless otherwise determined in writing by the Director of the State of Maryland Deposit Insurance Fund Corporation to be in the best financial interest of the Fund, all savings accounts liabilities that are insured by the Fund, to the extent of the insurance, and liabilities to the State, of the following institutions:
(1)    A savings and loan association;
(2)    A newly-formed commercial bank chartered to consummate a transaction with a savings and loan association under this subtitle; or
(3)    A commercial bank that results from the conversion of a savings and loan association.
(c)    “Act” means the federal Bank Holding Company Act of 1956, as amended.
(d)    “Maryland bank holding company” means a company that is defined as a bank holding company under the Act and that conducted its principal banking business in Maryland on July 1, 1966, or on the date on which the company became a bank holding company under the Act, whichever occurred later.
(e)    “Out-of-state bank holding company” means a company that is defined as a bank holding company under the Act and that conducted its principal banking business in a jurisdiction of the United States other than Maryland on July 1, 1966, or on the date on which the company became a bank holding company under the Act, whichever occurred later.
(f)    “Savings accounts” has the meaning stated in § 10-101(k) of this article.
(g)    “Savings and loan association” means a corporation that is:
(1)    Chartered under the laws of this State as a savings and loan association; and
(2)    Insured by the State of Maryland Deposit Insurance Fund Corporation.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1101.1 - Effective Period of Subtitle

The provisions of this subtitle which authorize an out–of–state bank holding company to acquire and hold certain institutions are only in effect through June 1, 1986. Any acquisition that was approved under this subtitle before June 1, 1986, remains subject to the terms and conditions that were in effect before that date, including the authorizations in § 5–1102(c) and (d) of this subtitle.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1102 - Scope of Subtitle

(a)    This subtitle sets forth the conditions under which an out-of-state bank holding company may acquire and hold:
(1)    One or more savings and loan associations to be converted into one or more commercial banks; or
(2)    One or more newly-formed commercial banks that have acquired or acquire one or more savings and loan associations.
(b)    The acquisition of a commercial bank by an out-of-state bank holding company under this subtitle is authorized for purposes of § 3(d) of the Act.
(c)    Notwithstanding any other provision of law, an out-of-state bank holding company that has made an acquisition under this subtitle subsequently shall be permitted, directly or indirectly, to acquire and hold Maryland bank holding companies or constituent banks, as defined in Title 3, Subtitle 7 of this article, in this State as if the out-of-state bank holding company were a bank holding company the operations of whose banking subsidiaries are principally conducted in this State for purposes of § 3(d) of the Act. Any merger with or acquisition of a Maryland bank holding company by an out-of-state bank holding company, directly or indirectly, or any consolidation with, merger with or transfer of assets to a constituent bank by an out-of-state bank holding company, directly or indirectly, shall be governed by the procedural requirements of Subtitle 10 of this title.
(d)    Except for the procedural requirements of this section, an out-of-state bank holding company may acquire and hold Maryland bank holding companies or constituent banks in this State under subsection (c) of this section without regard to the restrictions found in Subtitle 10 of this title.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1104 - Powers of Commissioner to Consummate Acquisition

If the Commissioner deems it appropriate in order to consummate an acquisition under this subtitle, the Commissioner may:
(1)    Convert the charter, form of ownership, or operating powers of a savings and loan association into the charter, form of ownership, or operating powers of a commercial bank;
(2)    Authorize the consolidation, merger, or transfer of assets of a savings and loan association into one or more savings and loan associations or commercial banks; and
(3)    Charter a new commercial bank or savings and loan association to acquire all or a substantial portion of the assets and liabilities of an existing savings and loan association, including all savings accounts liabilities and liabilities to the State.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1105 - Powers of and Restrictions on Commercial Bank Acquired Under Subtitle

(a)    Except as provided in subsections (b), (c), (d), and (e) of this section, a commercial bank acquired under this subtitle may exercise all the powers of, and shall be subject only to those restrictions imposed on a commercial bank owned by a Maryland bank holding company under applicable State law.
(b)    A commercial bank that results from a conversion of a savings and loan association or acquires a savings and loan association may hold assets or conduct business activities, other than insurance assets and insurance activities, that result from the acquisition of a savings and loan association and that do not conform with applicable law, unless a different period is authorized by federal regulatory agencies:
(1)    For a period of 5 years after the acquisition; and
(2)    If the Commissioner approves, for an additional period not exceeding 5 years.
(c)    A commercial bank that results from a conversion of a savings and loan association or acquires a savings and loan association may hold insurance assets or conduct insurance activities that result from the acquisition of a savings and loan association and that do not conform with applicable law, unless a different period is authorized by federal regulatory agencies, for a period of 2 years after the date of acquisition.
(d)    Except as provided in subsection (c) of this section, a commercial bank acquired under this subtitle may hold insurance assets or conduct insurance activities only to the extent permitted under applicable law to a Maryland commercial bank.
(e)    A commercial bank that results from the conversion of a savings and loan association or acquires a savings and loan association that is subject to the provisions of this section may not exercise any rights afforded to a Maryland bank, a Maryland bank holding company, or an out-of-state bank holding company under any Maryland law authorizing reciprocal interstate banking acquisitions until such time as national reciprocal interstate banking is authorized under State law.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1106 - Powers of Commissioner as to Plan of Acquisition

(a)    Notwithstanding any other provisions of law to the contrary, the Commissioner may:
(1)    Exercise any State regulatory approval that may be required to complete a plan of acquisition under this subtitle; and
(2)    Waive any procedural requirements, including publication and hearing procedures, if the Commissioner determines that prompt approval of the application protects the best interests of the depositors and creditors of the savings and loan association to be acquired under this subtitle and is in the public interest.
(b)    The Commissioner shall give notice in the Maryland Register of the final action that has been taken on an application filed under this subtitle.
2023 Maryland Statutes › Financial Institutions › Title 5 - Banking Institutions -- General Provisions › Subtitle 11 - Savings and Loan Associations -- Emergency Interstate Acquisitions › Section 5-1107 - Indemnification of Claims; Release of State of Maryland Deposit Insurance Fund Corporation; Repayment of Indebtedness to Former Maryland Savings-Share Insurance Corporation or State of Maryland Deposit Insurance Fund Corporation

Upon and after the acquisition of each savings and loan association or commercial bank successor to a savings and loan association to be acquired under this subtitle, the out-of-state bank holding company and the acquired institution shall, unless otherwise determined in writing by the Fund Director to be in the best financial interest of the Fund:
(1)    Defend, indemnify, and hold harmless the State of Maryland, its agencies, instrumentalities, officials, agents, and employees from all claims of:
(i)    Holders of savings accounts in that savings and loan association arising out of insurance of their accounts by the Maryland Savings-Share Insurance Corporation or the State of Maryland Deposit Insurance Fund Corporation; and
(ii)    Parties to loan agreements, loan commitments, lines of credit, or letters of credit of that savings and loan association arising solely out of the failure of the commercial bank to honor within a reasonable period of time after its acquisition by the out-of-state bank holding company the terms of a legally binding written commitment entered into by that savings and loan association;
(2)    Relinquish any right to and release the State of Maryland Deposit Insurance Fund Corporation from any obligation to return any part of the capital deposit required for membership in the Fund; and
(3)    Provide for repayment of any indebtedness incurred by an acquired savings and loan association to the former Maryland Savings-Share Insurance Corporation or the State of Maryland Deposit Insurance Fund Corporation.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 1 - Definitions › Section 6-101 - Definitions

(a)    In this title the following words have the meanings indicated.
(b)    “Board” means the board of directors of a credit union.
(c)    (1)    “Branch” means a credit union office at which shares or deposits are received, share drafts or checks are paid, or money is lent.
(2)    “Branch” includes a mobile branch or other special–purpose facility that performs a function of a branch.
(3)    “Branch” does not include an automated teller machine as defined in § 1–401(d) of this article.
(d)    “Credit union” means a cooperative, nonprofit financial institution organized under this title to conduct business in the State.
(e)    “Credit union service organization” means an entity formed to engage in activities that:
(1)    Are incidental to the conduct of the business of a credit union;
(2)    Advance or facilitate the purposes of a credit union; and
(3)    Primarily serve a credit union and its members.
(f)    (1)    “Credit union share guaranty corporation” means a corporation engaged in the business of guaranteeing or insuring payment of a credit union share or deposit account.
(2)    “Credit union share guaranty corporation” includes the Credit Union Insurance Corporation established under Title 7 of this article.
(g)    “Deposit account” means a balance held by a credit union on which a contractual rate of interest may be paid as a debt owed by the credit union to the depositor.
(h)    “Fixed assets” includes land, buildings, leasehold improvements, furniture, fixtures, and equipment used in the conduct of the regular business of a credit union.
(i)    “Member in good standing” means a member who:
(1)    Owns at least one share in a credit union;
(2)    Is current on all credit obligations to the credit union; and
(3)    Has not caused the credit union a credit or deposit loss that is currently outstanding.
(j)    “Officer” means any officer that a Maryland corporation is required or permitted to have under § 2–412 of the Corporations and Associations Article.
(k)    “Official” means:
(1)    A director;
(2)    A member of a credit committee; or
(3)    A member of a supervisory committee.
(l)    “Out–of–state credit union” means:
(1)    A federal credit union with its main office in a state other than this State; or
(2)    A credit union chartered and primarily regulated by another state.
(m)    “Share” or “share account” means a balance held by a credit union on which a dividend may be paid and which confers membership and voting rights on the member.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-302 - Membership

(a)    In this section, “immediate family relative” means:
(1)    A spouse;
(2)    A child;
(3)    A sibling;
(4)    A parent;
(5)    A grandparent;
(6)    A grandchild;
(7)    A stepparent;
(8)    A stepchild;
(9)    A step-sibling; or
(10)    Any adopted relative.
(b)    A member of a credit union may be:
(1)    An individual who shares with other members of the credit union one of the common bonds within the field of membership types approved by the Commissioner;
(2)    An employee of the credit union;
(3)    An entity that is composed primarily of individuals who are eligible for membership;
(4)    An individual living in the same residence and maintaining a single economic unit with an individual who is eligible for membership; and
(5)    An immediate family relative of an individual who is eligible for membership.
(c)    A person that is eligible for membership under subsection (b) of this section becomes a member when the person:
(1)    Subscribes to and pays for at least one share; and
(2)    Meets all of the other requirements of the bylaws of the credit union.
(d)    Once an individual who is eligible for membership under subsection (b)(4) or (5) of this section becomes a member, then an immediate family relative of the member is eligible to become a member.
(e)    A member remains a member of a credit union until the member:
(1)    Chooses to withdraw from the membership of the credit union; or
(2)    Is expelled by the board under § 6-319 of this subtitle.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-303 - Expanding Common Bond Membership Fields

(a)    (1)    Subject to the provisions of § 6-301(c) and (e) of this subtitle, a multiple common bond credit union may add to its field of membership a group of over 750 potential members, excluding individuals who are eligible for membership under § 6-302(b)(4) or (5) of this subtitle, if:
(i)    The members have approved the necessary amendment to the bylaws, as required under § 6-320(a) of this subtitle;
(ii)    The credit union files with the Commissioner an application and any other documents that the Commissioner deems necessary to make a determination; and
(iii)    The Commissioner determines that:
1.    The credit union has not engaged in any material unsafe or unsound practice during the 1-year period preceding the date of filing the application;
2.    The credit union has adequate net worth;
3.    The credit union has the administrative capability to serve the potential members of the group and the financial resources to meet the need for additional staff and assets to serve the potential members of the group;
4.    Any potential harm that the expansion may have on any other credit union and its membership is clearly outweighed in the public interest by the probable beneficial effect of the expansion in meeting the convenience and needs of the potential members of the group;
5.    Formation of a separate credit union by the group is not practicable and consistent with reasonable safety and soundness standards; and
6.    The group is within reasonable geographic proximity to a branch of the credit union.
(2)    Unless the Commissioner notifies the credit union that a different time period is necessary, within 60 days after the application is filed, the Commissioner shall notify the credit union of the determination on the application.
(b)    Subject to the provisions of § 6-301(c) and (e) of this subtitle, a multiple common bond credit union may add to its field of membership a group of 750 or less potential members, excluding individuals who are eligible under § 6-302(b)(4) or (5) of this subtitle, if:
(1)    The board approves the addition of the group;
(2)    The credit union notifies the Commissioner in writing within 30 days after the board approves the addition of the group;
(3)    The requirements of subsection (a)(1)(iii) of this section are met; and
(4)    The addition of the group has not been disapproved by the Commissioner within 30 days of the notification required under item (2) of this subsection.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-304 - Changing Membership Type

(a)    A credit union may convert to another field of membership type, as described in § 6–301 of this subtitle, if:
(1)    The credit union:
(i)    Meets the common bond requirements of the proposed field of membership type; and
(ii)    Files with the Commissioner an application and any other documents that the Commissioner deems necessary to make a determination on the application; and
(2)    The Commissioner determines that approval:
(i)    Is in the best interest of the existing and proposed memberships;
(ii)    Provides a means for better service to the existing membership;
(iii)    Is in accordance with sound credit union practices; and
(iv)    Does not expose the funds of the existing members to unnecessary risk.
(b)    Unless the Commissioner notifies the credit union that a different time period is necessary, within 120 days after the application is filed, the Commissioner shall notify the credit union of the determination on the application.
(c)    (1)    No less than 30 days before the effective date of the conversion, the credit union shall give notice of the conversion to all groups of potential members of the credit union that will be removed from the field of membership as a result of the conversion.
(2)    On and after the effective date of the conversion, the credit union:
(i)    May not continue to serve groups within the field of membership of the credit union that no longer qualify for membership in the credit union as a result of the conversion; and
(ii)    May continue to serve members of a group identified under item (i) of this paragraph who are members before the effective date of the conversion.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-305 - Execution and Contents of Articles of Incorporation and Agreement

(a)    The incorporators shall sign and acknowledge three copies of articles of incorporation.
(b)    The articles of incorporation shall include:
(1)    The name and residential address of each incorporator;
(2)    A statement that each incorporator is 18 years of age or older;
(3)    A statement that the incorporators are associating to form a credit union under this title;
(4)    The name of the credit union;
(5)    The field of membership type as described in § 6-301 of this subtitle;
(6)    The municipal area and county where the credit union is to be located;
(7)    The par value of the shares of the credit union;
(8)    The number of shares to which each incorporator subscribes;
(9)    The name and address in the State of the resident agent of the credit union for purposes of service of process in accordance with the Maryland General Corporation Law; and
(10)    The number of directors and the names and residential addresses of the individuals who will serve as directors on the board until their successors are elected and qualify.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-306 - Adoption and Contents of Bylaws

(a)    The incorporators shall adopt bylaws for the credit union and shall sign and acknowledge two copies of them.
(b)    The bylaws of the credit union shall include:
(1)    The name and purpose of the credit union;
(2)    Provisions for annual and special meetings of members and the manner of notification for and conduct of the meetings;
(3)    The number of members that constitute a quorum and provisions that relate to voting;
(4)    A detailed description of the field of membership;
(5)    The qualifications for membership;
(6)    The number of directors on the board and their powers and duties;
(7)    The powers and duties of its credit committee, if any, and supervisory committee;
(8)    The powers and duties of its officers;
(9)    The number of and qualifications for directors emeriti, if any;
(10)    The par value of its shares and the conditions for issuance, payment, transfer, and withdrawal;
(11)    The conditions on which deposits may be received and withdrawn; and
(12)    Provisions for determining and paying dividends on shares and interest on deposits.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-307 - Articles of Incorporation and Bylaws -- Filing for Examination and Approval

(a)    The incorporators shall:
(1)    File with the Commissioner for examination three copies of the articles of incorporation and two copies of the bylaws; and
(2)    Pay to the Commissioner a fee of $500.
(b)    The Commissioner shall investigate and determine if:
(1)    The articles and bylaws are framed in accordance with law and are reasonable;
(2)    The character, responsibility, and general fitness of the incorporators command confidence and warrant belief that the business of the proposed credit union will be conducted honestly and efficiently, in accordance with the intent of this title; and
(3)    Allowing the proposed credit union 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 or bylaws that the Commissioner considers necessary.
(d)    (1)    Unless the Commissioner notifies the applicant that a different time period is necessary, within 120 days after the articles and bylaws are filed, the Commissioner shall sign, date, and endorse each copy of the articles and bylaws as “approved” or “refused”.
(2)    If formation of the credit union is refused, the Commissioner shall notify the incorporators in writing of the reason for the refusal.
(3)    If formation of the credit union is approved, the Commissioner shall:
(i)    Return to the incorporators two of the endorsed copies of the articles and one of the endorsed copies of the bylaws; and
(ii)    Keep one of the endorsed copies of the articles and the bylaws.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-308 - Articles of Incorporation and Bylaws -- Filing for Record

(a)    If the Commissioner approves the articles and bylaws, the incorporators shall file for record with the State Department of Assessments and Taxation one of the endorsed copies of the articles of incorporation.
(b)    When the articles of incorporation are filed for record in accordance with the provisions of subsection (a) of this section, the credit union becomes a corporation.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-309 - Articles of Incorporation

(a)    When filing the articles of incorporation and bylaws with the Commissioner under § 6-307 of this subtitle, the incorporators shall file with the Commissioner an initial application on a form that the Commissioner requires.
(b)    The initial application shall include:
(1)    The field of membership type requested;
(2)    A detailed description of the field of membership;
(3)    A mission statement;
(4)    A detailed business plan that includes the items that the Commissioner reasonably requires; and
(5)    Any other information that the Commissioner reasonably requires.
(c)    (1)    In connection with an initial application and at any other time the Commissioner requests, each incorporator and director 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.
(2)    Any incorporator or director required by this subsection 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.
(3)    The fingerprinting and criminal history records check requirements shall apply to any other official or officer of the credit union as requested by the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part II - Powers of a Credit Union › Section 6-312 - General Powers

In addition to the powers set forth elsewhere in this title, a credit union may:
(1)    Receive the shares and deposits of its members;
(2)    Lend money to its members;
(3)    Invest funds as provided in this title; and
(4)    Undertake other activities that:
(i)    Are consistent with this title;
(ii)    Relate to its purposes; and
(iii)    Are authorized by its bylaws.