§ 2–118.1
Statutes in effect as of October 1, 2026.
Md. Code Ann., Fin. Inst. § 2-118.1 (2026)
Title 2. Commissioner and Boards
Subtitle 1. Commissioner of Financial Regulation
§ 2–118.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Fund” means the Maryland Community Investment Venture Fund.
(3)
“Low– to moderate–income tract” has the meaning stated in § 5–203 of this article.
(b)
(1)
There is a Maryland Community Investment Venture Fund.
(2)
The Fund is a private venture fund that:
(i)
Is an instrumentality of the State; and
(ii)
Uses public and private investment funds.
(c)
(1)
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:
(i)
Promoting the development of financial product or financial product underwriting innovations that enhance access to capital, funding, and other financial services for consumers and businesses in low– to moderate–income tracts in the State through investments, grants, and other forms of financial assistance;
(ii)
Deploying, testing, and evaluating the innovations for providing capital and funding to consumers and businesses in low– to moderate–income tracts in the State; and
(iii)
Promoting and making the innovations available to banking institutions and credit unions for use in enhancing access to capital, funding, and other financial services for consumers and businesses in low– to moderate–income tracts in the State.
(2)
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.
(d)
(1)
(i)
The Commissioner shall establish a governance structure for the Fund.
(ii)
The Commissioner may collaborate with investors in the Fund when establishing the governance structure.
(2)
The Commissioner, or the Commissioner’s designee, shall serve on the governing body of the Fund.
(e)
(1)
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.
(2)
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.
(f)
(1)
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.
(2)
The Commissioner may not make an investment in the Fund after June 30, 2030.
(g)
All investment returns or return of capital from the Fund with respect to an investment authorized by the Commissioner shall be credited to the Banking Institution and Credit Union Regulation Fund.
(h)
At the direction of the Commissioner, and in addition to any customary and appropriate audits of the Fund, the governing body of the Fund shall obtain the services of an independent third party designated by the Commissioner on an annual basis to evaluate whether the investments made to the Fund comply with this section.
(i)
(1)
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.
(2)
An additional private venture fund established in accordance with this subsection shall comply with the requirements of subsections (b) through (f) of this section.
(j)
(1)
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.
(2)
Unless otherwise provided by law, no part of the Fund may revert or be credited to:
(i)
The General Fund of the State; or
(ii)
Except as provided in subsection (g) of this section, a special fund of the State.
(k)
(1)
The State Treasurer is the custodian of the Fund.
(2)
The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(3)
Any interest earnings of the Fund shall be credited to the Fund.
(l)
The Commissioner may adopt regulations reasonably necessary to carry out this section.