# Financial Institutions (GFI)

## Title 3. Banking Institutions -- Commercial Banks

### Subtitle 3. Capital Stock; Surplus Requirements; Stockholders

#### Section 3-304

(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.

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