# Financial Institutions (GFI)

## Title 3. Banking Institutions -- Commercial Banks

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

#### Section 3-306

(a) If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank:

  (1) Shall transfer to its surplus annually at least 10 percent of its net earnings; and

  (2) May not declare or pay any cash dividends that exceed 90 percent of its net earnings.

(b) Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.

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