§ 3–304

Statutes in effect as of October 1, 2026.

Md. Code Ann., Fin. Inst. § 3-304 (2026)

Title 3. Banking Institutions -- Commercial Banks

Subtitle 3. Capital Stock; Surplus Requirements; Stockholders

(a)

Except as necessary to prevent a loss on a loan previously made in good faith, a commercial bank may not:

(1)

Make any loan secured by any of its outstanding capital stock; or

(2)

Buy or hold any of its outstanding capital stock.

(b)

If a commercial bank buys or holds any of its outstanding capital stock, the commercial bank shall sell the stock at public or private sale within:

(1)

1 year after the date of acquisition; or

(2)

Any longer period that the Commissioner authorizes.