Title 2. Commissioner and Boards — Subtitle 1. Commissioner of Financial Regulation

A Deputy Commissioner for Depository Activities; and

A Deputy Commissioner for Non–Depository Activities.

The Deputy Commissioner for Depository Activities shall have at least 5 years of experience in the regulation or management of financial institutions.

The Deputy Commissioner for Non–Depository Activities shall have at least 5 years of experience in the regulation or management of persons required to be licensed or registered under this article or the Commercial Law Article.

The Deputy Commissioner for Depository Activities has the powers and duties of the Commissioner:

The Deputy Commissioner for Non–Depository Activities has the powers and duties of the Commissioner to the extent delegated by the Commissioner.

In this section the following words have the meanings indicated.

“Applicant” means an applicant for employment with the Commissioner.

“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.

“Employee” means a full–time or part–time employee of the Commissioner, including a temporary employee or a contractual employee.

Two complete sets of the legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;

The fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; and

The mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.

Shall be confidential;

May not be redisseminated; and

Shall be used only for the employment purpose authorized by this section.

The nature of the crime;

The relevance of the crime to the duties and responsibilities related to employment;

The length of time since the conviction; and

The behavior and activities of the individual since the conviction.

In this section the following words have the meanings indicated.

“Servicing” means:

“Student education loan” means any loan, notwithstanding any election of law or designation of status in any contract, used for financing postsecondary education or other postsecondary school–related expenses.

“Student loan borrower” means:

“Student Loan Ombudsman” means an individual, whether a paid employee or a volunteer, whom the Commissioner designates to serve as a liaison between student loan borrowers and student loan servicers.

The Commissioner shall designate an individual to serve as the Student Loan Ombudsman.

Receiving and reviewing complaints from student loan borrowers;

Attempting to resolve complaints received under item (1) of this subsection, including by collaborating with institutions of higher education, student loan servicers, and any other participants in student loan lending, such as the Board of Regents of the University System of Maryland and the Maryland Higher Education Commission; and

Compiling and analyzing complaint data.

Helping student loan borrowers understand their rights and responsibilities under the terms of student education loans;

Providing information to the public, State agencies, elected officials, and other individuals regarding student loan borrower problems and concerns;

Disseminating information about the availability of the Student Loan Ombudsman to assist those with student education loan servicing concerns, including disseminating the information to:

Developing and disseminating information to increase awareness of and participation in the federal Public Service Loan Forgiveness Program in accordance with § 3–1804 of the Labor and Employment Article.

The Student Loan Ombudsman shall:

On or before January 1 each year, the Student Loan Ombudsman shall report its findings and recommendations to the General Assembly in accordance with § 2–1257 of the State Government Article.

On or before October 1, 2019, the Student Loan Ombudsman, in consultation with the Commissioner, shall establish a student loan borrower education course.

The course shall:

In this section the following words have the meanings indicated.

“Collection agency” has the meaning stated in § 7–101 of the Business Regulation Article.

“Consumer reporting agency” has the meaning stated in § 14–1201 of the Commercial Law Article.

“Credit services business” has the meaning stated in § 14–1901 of the Commercial Law Article.

“Debt management services provider” has the meaning stated in § 12–901 of this article.

“Money transmission” has the meaning stated in § 12–401 of this article.

“Mortgage lender” has the meaning stated in § 11–501 of this article.

“Mortgage originator” has the meaning stated in § 11–601 of this article.

“Provide check cashing services” has the meaning stated in § 12–101 of this article.

“Sales finance company” has the meaning stated in § 11–401 of this article.

The Commissioner may participate in NMLS for:

To facilitate participation in NMLS, the Commissioner may adopt regulations that waive or modify the requirements of:

An examination fee for a new commercial bank charter under § 3–203 of this article..............................................................................................$15,000

A filing fee for an agreement of consolidation, merger, or transfer of assets under § 3–703 of this article:

An application fee for a banking institution to have an affiliate under § 5–403 of this article    $750

A fee for a conversion of a national banking association, a federal stock savings and loan association, or a federal stock savings bank into a commercial bank under § 3–801 of this article or a federal mutual savings bank into a savings bank under § 4–701.1 of this article:

Subject to subsection (b) of this section, a branch fee for:

An application fee for a foreign banking permit under § 12–208 of this article.................................................................................................................$500

A renewal fee for a foreign banking permit under § 12–210 of this article.........................................................................................................................$500

A fee for a certificate of valid charter if requested by or on behalf of a person other than a banking institution...............................................................$50

A fee for a certified copy of a document    $50

An application fee for conversion of a savings bank to a capital stock commercial bank under § 4–703 of this article………………………………$5,000

A branch that is acquired by a banking institution through a merger or consolidation with, or transfer to the banking institution of all or substantially all of the assets of, a bank or an insured depository institution; or

An other–state bank chartered by a state that does not charge a fee to a banking institution for establishing a branch in that state.

Be an officer or director of any State banking institution or national banking association, or in any entity engaged in the business of making loans; or

Engage in any other business relating to banks and financial institutions or lending.

Become indebted to any institution that is subject to the jurisdiction of the Commissioner; or

Engage or be interested in the sale of securities of or in the negotiation of loans for others to or with any banking institution or credit union.

Made to a member of a credit union that has a membership of over 60,000 State employees; and

Approved by:

Serve as an officer, director, or committee member of a credit union; or

Exercise any voting rights in a credit union.

Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State;

Any out–of–state bank, as defined in § 5–1001 of this article, having a branch that accepts deposits in this State;

Any institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State; or

An affiliate of an institution described in item (1), (2), or (3) of this subsection over which the Commissioner has no jurisdiction.

Issue an advertisement or make a representation that is false, misleading, or deceptive;

Impose, as a condition for a loan, a restriction on obtaining credit, property, or service from a competitor unless the restriction is reasonably necessary to secure the loan;

Impose, as a condition for a service, a restriction on obtaining credit, property, or service from a competitor; or

Engage in an act or a practice that is anticompetitive, unfair, deceptive, abusive, or injurious to the public interest.

For which it maintains or is required to maintain a license or registration issued by the Commissioner or the State Collection Agency Licensing Board; or

Subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article.

Make public or private investigations as the Commissioner considers necessary to:

Require or permit a person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning the matter to be investigated; and

Subject to the provisions of Title 4 of the General Provisions Article:

In case of contumacy by or refusal to obey a subpoena issued to a person, the circuit court of the county in which the person resides or transacts business, on application by the Commissioner, may issue to the person an order requiring the person to appear before the Commissioner or the officer designated by the Commissioner to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.

Failure to obey the order of the court may be punished by the court as a contempt of court.

Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and

Notice that the summary cease and desist order will be entered as final if the person does not request a hearing within 15 days of receipt of the summary cease and desist order.

Issue a final cease and desist order against the person;

Suspend or revoke the license of the person;

Issue a penalty order against the person imposing a civil penalty not exceeding:

Issue an order against the person requiring the person to take affirmative action to correct the violation, including making restitution to any person aggrieved by the violation; or

Take any combination of the actions specified in this subsection.

The seriousness of the violation;

The good faith of the violator;

The violator’s history of previous violations;

The deleterious effect of the violation on the public and the industry involved;

The assets of the violator; and

Any other factors relevant to the determination of the financial penalty.

A temporary restraining order; or

A temporary or permanent injunction.

A temporary restraining order;

A temporary or permanent injunction;

A civil penalty not exceeding:

A declaratory judgment;

An order preventing access to the violator’s assets;

Rescission;

Restitution; and

Any other relief as the court deems just.

A person required to be licensed or registered under this article, whether or not the person maintains a license or registration;

A collection agency required to be licensed under the Business Regulation Article, whether or not the collection agency maintains a license;

A person required to be licensed by or registered with the Commissioner under applicable provisions of the Commercial Law Article, whether or not the person maintains a license or registration; or

A person otherwise engaging in activity subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction.

Information relating to publicly adjudicated disciplinary or enforcement actions against a regulated person; or

Information or material provided to NMLS.

If performing a public duty to report on or take special action relating to a regulated person;

If testifying as a witness in a criminal proceeding;

If informing a director, officer, member, partner, employee, or agent of a regulated person of the results of an examination;

If providing information to any state or federal agency having supervisory authority over the regulated person; and

If entering information into evidence under seal in a public enforcement hearing.

Enter into information sharing agreements with any federal or state regulatory agency having authority over regulated persons or with any federal or state law enforcement agency, including the Office of Foreign Assets Control, and any successor to these agencies, and any agency of a foreign country with primary responsibility for regulating regulated persons, if the agreements prohibit the agencies from disclosing any shared information about a regulated person without the prior written consent from the Commissioner regarding disclosure of the particular information; and

Exchange information about a regulated person, including information obtained or generated during an examination, with any federal or other state’s regulatory agency having authority over the regulated person or with any federal or state law enforcement agency, including the Office of Foreign Assets Control, and any successor to these agencies, and any agency of a foreign country with primary responsibility for regulating regulated persons.

May not disclose the record to any person that requests the record under Title 4, Subtitles 1 through 5 of the General Provisions Article; and

Shall forward the request for the record to the agency that owns the record for processing in accordance with the laws or regulations governing disclosure of the agency’s records.

For which it maintains or is required to maintain a license or registration issued by the Commissioner or the State Collection Agency Licensing Board; or

Subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article.

Remains the property of the Commissioner; and

May not be further disclosed by any person without the prior written permission of the Commissioner.

Forfeiture of the person’s office or employment; and

A fine not exceeding $1,000 or imprisonment not exceeding 2 years or both.

A person, including the Commissioner and an employee of and the attorney for the Commissioner’s office, may not disclose any information obtained or generated in the course of exercising the Commissioner’s authority to examine banking institutions or credit unions under this article; and

The Commissioner and the employees of and the attorney for the Commissioner’s office may not disclose:

If performing a public duty to report on or take special action about the business of a banking institution or credit union;

If testifying as a witness in a criminal proceeding;

If informing any director or authorized officer, employee, or agent of a banking institution or credit union of the results of an examination;

If providing information to any state or federal agency having supervisory authority over the banking institution or credit union;

If providing information about a banking institution to the Federal Deposit Insurance Corporation, if the banking institution:

If providing information about a banking institution to the Board of Governors of the Federal Reserve Bank System or the Federal Reserve Bank of Richmond, if the banking institution:

If providing information about a banking institution to the Office of the Comptroller of the Currency, if the banking institution:

If providing information about a banking institution to any other state bank regulatory agency if the banking institution:

If providing information about a credit union to a credit union share guaranty corporation, if the credit union:

If providing information about a credit union to the National Credit Union Administration, if the credit union:

If providing information about a credit union to another state bank regulatory agency, if the credit union:

If entering information into evidence under seal in a public enforcement hearing.

Enter into information sharing agreements with any federal or state regulatory agency having authority over banking institutions or credit unions, a federal home loan bank, or any federal or state law enforcement agency, including the Office of Foreign Asset Control, and any successor to these agencies, provided that the agreements prohibit the agencies from disclosing any shared information about a banking institution or credit union without the prior written consent from the Commissioner regarding disclosure of the particular information; and

Exchange information about a banking institution or a credit union, including information obtained or generated during an examination, with any federal or other state’s regulatory agency having authority over the banking institution or credit union or with any federal or state law enforcement agency.

May not disclose the record to any person that requests the record under Title 4, Subtitles 1 through 5 of the General Provisions Article; and

Shall forward the request for the record to the agency that owns the record for processing in accordance with the laws or regulations governing disclosure of the agency’s records.

Remains the property of the Commissioner; and

May not be further disclosed by any person without the prior written permission of the Commissioner.

Forfeiture of the person’s office or employment; and

A fine not exceeding $1,000 or imprisonment not exceeding 2 years or both.

All revenue received for the chartering and regulation of persons who engage in the business of a banking institution or credit union under this article; and

Any other fee, assessment, or revenue received by the Commissioner from banking institutions and credit unions under this article.

Expenditures authorized under this article;

Investments authorized under § 2–118.1 of this subtitle; and

Any other expense authorized in the State budget.

All the costs and expenses of the Commissioner relating to the regulation of banking institutions and credit unions under this article shall be included in the State budget.

Any expenditures from the Fund to cover costs and expenses of the Commissioner may be made only:

If, in any given fiscal year, the amount of the revenue collected by the Commissioner and deposited into the Fund exceeds the actual appropriation for the Commissioner to regulate banking institutions and credit unions under this article, the excess amount shall be carried forward within the Fund.

The State Treasurer is the custodian of the Fund.

The State Treasurer shall deposit payments received from the Commissioner into the Fund.

The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State.

Unless otherwise provided by law, no part of the Fund may revert or be credited to:

In this section the following words have the meanings indicated.

“Fund” means the Maryland Community Investment Venture Fund.

“Low– to moderate–income tract” has the meaning stated in § 5–203 of this article.

There is a Maryland Community Investment Venture Fund.

The Fund is a private venture fund that:

Subject to paragraph (2) of this subsection, the purpose of the Fund is to develop opportunities for banking institutions and credit unions to better serve the needs of low– to moderate–income tracts by:

With the approval of the Commissioner, the purpose of the Fund may be altered in a manner that is consistent with the intent and requirements of this section.

The Commissioner, or the Commissioner’s designee, shall serve on the governing body of the Fund.

The Commissioner may use up to $250,000 from the Banking Institution and Credit Union Regulation Fund established under § 2–118 of this subtitle to cover the expenses associated with establishing and administering the Fund, including accounting, advisory, third–party service provider, marketing, and other necessary expenses.

To encourage private investment, the Commissioner may provide an equity capital investment in the Fund in an amount up to $2,500,000 from the Banking Institution and Credit Union Regulation Fund.

Through June 30, 2030, the Commissioner may match an investment made in the Fund by a banking institution or credit union up to the amount of the assessment credit earned by the banking institution or credit union in accordance with § 5–203(d) or § 6–712(c)(4) of this article.

The Commissioner may not make an investment in the Fund after June 30, 2030.

If the Commissioner determines that separate private venture funds are necessary to accomplish the purpose of the Fund, the Commissioner may use money from the Fund to establish additional private venture funds.

An additional private venture fund established in accordance with this subsection shall comply with the requirements of subsections (b) through (f) of this section.

The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article and may not be deemed a part of the General Fund of the State.

Unless otherwise provided by law, no part of the Fund may revert or be credited to:

The State Treasurer is the custodian of the Fund.

The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

Any interest earnings of the Fund shall be credited to the Fund.

In this section the following words have the meanings indicated.

“Board” means the State Collection Agency Licensing Board established under Title 7 of the Business Regulation Article.

“Fund” means the Non–Depository Special Fund established under this section.

“License” means any license issued by the Commissioner or the Board under applicable law.

“License category” refers to all licenses issued by either the Commissioner or the Board under any of the following provisions:

“Licensed person” means any person required by law to be licensed by either the Commissioner or the Board, regardless of whether the person maintains the required license.

“Registered person” means any person required by law to be registered by the Commissioner or the Board, regardless of whether the person maintains the required registration.

“Regulated person” means:

All revenues received from licensing fees from each licensed person;

All revenues received from registration fees from each registered person;

All revenues received from annual assessments under subsection (h) of this section;

Income from the investments that the State Treasurer makes for the Fund; and

Any other fee, examination or investigation fee or assessment, or revenue received by the Commissioner or the Board with respect to any regulated person.

The Commissioner and the Board shall pay all fines and penalties collected from any regulated person into the General Fund of the State; and

Revenue received by the Commissioner for use of the Foreclosed Property Registry established under Title 7 of the Real Property Article shall be paid by the Commissioner to the Foreclosed Property Registry Fund established under § 7–105.14 of the Real Property Article.

The annual State budget shall include the costs and expenses of the Commissioner and the Board relating to subsection (d) of this section.

Any expenditures from the Fund to cover costs and expenses of the Commissioner and the Board relating to subsection (d) of this section may be made only:

If, in any fiscal year, the amount of the revenue collected by the Commissioner and the Board and deposited into the Fund exceeds the actual appropriation for the Commissioner and the Board under paragraph (2)(i) of this subsection, the excess amount shall be carried forward within the Fund.

The State Treasurer is the custodian of the Fund.

The State Treasurer shall deposit payments received from the Commissioner and the Board into the Fund.

Unless otherwise provided by law, no part of the Fund may revert or be credited to:

In order to ensure the Fund contains sufficient amounts to achieve its purpose under subsection (d) of this section, the Commissioner may impose an annual assessment on any licensed person not more than once each year.

In calculating an assessment with respect to any licensed person, the Commissioner may consider:

A licensed person shall pay any assessment imposed under this section to the Commissioner within 30 calendar days after the assessment is imposed.

Register the trade name with the State Department of Assessments and Taxation; and

Obtain the approval of the Commissioner, or the State Collection Agency Licensing Board if licensed by the Board, to use the trade name by:

Maintain registration of the trade name in accordance with § 1–406 of the Corporations and Associations Article and any implementing regulations;

List the trade name in NMLS; and

Immediately notify the Commissioner, or the State Collection Agency Licensing Board if licensed by the Board, if the person amends, cancels, or otherwise fails to renew the registration of the trade name.

The Commissioner may request information from the third–party service provider who performs activities relating to financial services for the licensed person; and

If the licensed person has access to the information, the licensed person may provide the information to the Commissioner:

The examined third–party service provider; or

If the examined third–party service provider fails to cover the cost of the examination within 60 days after the date the Commissioner sends an invoice for the examination to the third–party service provider, the regulated entity that contracts with the third–party service provider.

All books, accounts, and records of a regulated entity or a third–party service provider as the Commissioner determines necessary to conduct a complete examination; and

Any officer, director, or employee of the regulated entity or, as appropriate, the third–party service provider, under oath, who may provide information on behalf of the regulated entity or the third–party service provider.

The Commissioner is authorized to take an enforcement action against any third–party service provider who:

The Commissioner may advise any regulated entity that uses the services of a third–party service provider who refuses to submit to examination or engages in unsafe or unsound activities that the continued use of the third–party service by the regulated entity may constitute unsafe or unsound activity.