# Financial Institutions (GFI)

## Title 3. Banking Institutions -- Commercial Banks

### Subtitle 2. Formation and Powers

#### Section 3-206

(a) Except as otherwise provided in this article, a commercial bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law.

(b) In addition to the powers set forth elsewhere in this article, a commercial bank may:

  (1) Receive deposits of money on which interest may be paid;

  (2) Buy and sell coin and bullion;

  (3) Buy and sell foreign and domestic exchange;

  (4) Subject to Sec. 3-604 of this title, accept drafts drawn on it;

  (5) Issue letters of credit that authorize the holder to draw drafts on it or on its correspondents payable at sight or at a time not exceeding 1 year;

  (6) Issue its debt instruments for money that is borrowed or received on deposit or for investment;

  (7) Lend money on personal security or on real or personal property;

  (8) Subject to Sec. 3-605 of this title, become owner and lessor of personal property;

  (9) Subject to Sec. 5-503 of this article, buy, hold, lease, and convey real property;

  (10) Pledge collateral to secure deposits of:

    (i) The federal government or its agencies; or

    (ii) Any state or its political subdivisions;

  (11) Pledge securities to secure the money of an estate administered under the federal bankruptcy laws;

  (12) Without being deemed a branch of a depository institution affiliate, act in accordance with Sec. 101(d) of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, as agent of any depository institution affiliate in:

    (i) Receiving deposits;

    (ii) Renewing time deposits;

    (iii) Closing loans;

    (iv) Servicing loans; or

    (v) Receiving payments on loans and other obligations; and

  (13) Exercise all of the powers usual in carrying on a banking business.

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Md. Code Ann., Fin. Inst. (as displayed at mgaleg.maryland.gov, October 16, 2026)