Title 5. Banking Institutions -- General Provisions — Subtitle 5. Miscellaneous Regulations
Statutes in effect as of October 1, 2026.
Md. Code Ann., Fin. Inst. § 5-503 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–503LinkCopy Citation
(a)
A banking institution may buy and hold real property only as provided in this section.
(b)
(1)
Subject to the limitations in paragraph (3) of this subsection, a banking institution may buy or hold any real property that is necessary for the convenient transaction of its business.
(2)
In addition to its offices, this property may include:
(i)
A parking lot that the banking institution provides, with or without charge, primarily for the use of its customers; and
(ii)
Any rental space that is located in the bank building or on adjoining land.
(3)
Except as provided in paragraph (4) of this subsection, a banking institution may not invest in its bank building and furnishings more than an amount that equals 50 percent of its unimpaired capital and surplus or guaranty fund.
(4)
If a banking institution is rated CAMELS 1 or 2 and remains well capitalized in accordance with the requirements of the Federal Deposit Insurance Act, it may invest in its bank building and furnishings an amount equivalent to 75 percent of its:
(i)
Unimpaired capital, surplus, and undivided profits; or
(ii)
Guaranty fund and undivided profits.
(c)
(1)
Subject to the limitations in paragraphs (2) and (3) of this subsection, a banking institution may hold any real property that the banking institution acquires:
(i)
In satisfaction of a debt contracted in the course of its business; or
(ii)
At sale on a judgment, decree, or mortgage foreclosure under a security that it holds.
(2)
At a sale, a banking institution may not bid more than the amount of money that is necessary to satisfy the secured debts and costs.
(3)
A banking institution:
(i)
May not hold property acquired under this subsection for more than:
(1)
8 years; and
(2)
Under conditions that the Commissioner sets, 2 additional years; and
(ii)
Within 1 year after that period, shall:
(1)
Sell the property; or
(2)
Reduce the value of the property on its books to a value that the Commissioner approves.
Md. Code Ann., Fin. Inst. § 5-504 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–504LinkCopy Citation
(a)
Notwithstanding any other provision of the laws or regulations of this State and subject to subsection (b) of this section, a banking institution may engage in any additional activity, service, or other practice in which, under federal law, national banking associations may engage subject to the same conditions that federal law requires or allows as to national banking associations.
(b)
(1)
A banking institution shall provide the Commissioner with written notice at least 45 calendar days before engaging in any activity, service, or other practice authorized under subsection (a) of this section.
(2)
The notice required under paragraph (1) of this subsection shall include a description of the proposed activity, service, or other practice, including:
(i)
The specific authority for the activity, service, or other practice; and
(ii)
Any condition that federal law requires or allows as to national banking associations.
(3)
The banking institution may begin to perform the activity, service, or other practice on the first business day after the 45th calendar day from the date the Commissioner receives the notice under paragraph (1) of this subsection unless the Commissioner:
(i)
Specifies a different date; or
(ii)
Prohibits the activity, service, or other practice.
(c)
The Commissioner may extend the 45–day period under subsection (b)(3) of this section if the Commissioner determines that the banking institution’s notice requires additional information or additional time for analysis.
(d)
The Commissioner may prohibit a banking institution from performing the activity, service, or other practice described in the notice provided under subsection (b) of this section if the Commissioner determines that performing the activity, service, or other practice would:
(1)
Adversely affect the safety and soundness of the banking institution;
(2)
Be detrimental to the welfare of the general economy of this State; or
(3)
Be detrimental to the public interest or to banking institutions.
Md. Code Ann., Fin. Inst. § 5-506 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–506LinkCopy Citation
Before a banking institution makes an unsecured loan of $10,000 or more to any person, the banking institution shall obtain sufficient financial information from the person to support the loan.
Md. Code Ann., Fin. Inst. § 5-507 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–507LinkCopy Citation
(a)
If a banking institution rejects an application for a residential mortgage loan, the banking institution shall give the applicant, at the applicant’s request, written notice of the rejection.
(b)
The applicant may use this written notice as evidence of rejection for purposes of the Maryland Home Financing Program.
Md. Code Ann., Fin. Inst. § 5-508 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–508LinkCopy Citation
If a banking institution holds a first mortgage on residential property and a private mortgage insurance corporation partially insures the mortgage, the banking institution shall eliminate all charges to the mortgagor for mortgage insurance premiums when the mortgage is reduced to the level at which the federal Homeowners Protection Act of 1998 requires termination of the private mortgage insurance insuring the mortgage.
Md. Code Ann., Fin. Inst. § 5-509 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–509LinkCopy Citation
(a)
Each banking institution shall be a member of the Federal Deposit Insurance Corporation unless the institution is not in the business of accepting deposits or retaining funds in a deposit account. A banking institution is not in the business of accepting deposits if it accepts a deposit as a trustee or custodian and is not in the business of retaining deposits if the deposits do not remain in a deposit account of the institution for more than two consecutive banking days. Any institution which is not in the business of accepting deposits or retaining funds in a deposit account as defined in this section shall not be bound by the provisions of § 5–403(c)(2) of this title.
(b)
If approved by a majority of its directors, a banking institution may:
(1)
Become and participate as a member of the Federal Reserve System; or
(2)
Withdraw from the system.
Md. Code Ann., Fin. Inst. § 5-511 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–511LinkCopy Citation
(a)
Banking institutions may not have common directors unless the Commissioner finds that a common directorship is in the public interest and not detrimental to either banking institution.
(b)
(1)
An individual who now is a director of more than one banking institution may complete the term of office of each directorship and may be reelected to each directorship.
(2)
This section does not prohibit any person from being an officer, employee, director, or trustee of a mutual holding company and its subsidiary savings bank, shares of which are owned by the same mutual holding company.
Md. Code Ann., Fin. Inst. § 5-512 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–512LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Commercial loan” means a loan that is made:
(i)
Solely to acquire or carry on a business or commercial enterprise; or
(ii)
To any business or commercial organization.
(3)
“Consumer loan” means a loan that is made primarily for personal, family, or household purposes.
(4)
“Executive officer” has the meaning stated in Title 12 of the Code of Federal Regulations, § 215.2.
(b)
Unless the loan is approved or exempted from approval as provided in this section, the following persons may not borrow, directly or indirectly, any money from a banking institution:
(1)
Any director, officer, or employee of the banking institution;
(2)
Any partnership of which the director, officer, or employee is a member; or
(3)
Any corporation in which the director, officer, or employee is an officer or owns the majority interest.
(c)
This section does not require approval of:
(1)
A commercial loan that is made to:
(i)
A director of the banking institution, unless the director also is an officer or employee of the banking institution;
(ii)
A partnership of which the director is a member, unless an officer or employee of the banking institution also is a member of that partnership; or
(iii)
A corporation in which the director holds any interest, unless an officer or employee of the banking institution is an officer or owns the majority interest in that corporation; or
(2)
A loan that is:
(i)
A consumer loan; and
(ii)
Is made to an employee of a banking institution who is not an executive officer or director of the banking institution.
(d)
(1)
A loan to a director, officer, or employee of a banking institution may be made only if the loan has been approved by a resolution adopted at and recorded in the minutes of a meeting of:
(i)
The board of directors of the banking institution; or
(ii)
The executive committee of the banking institution, if that committee is authorized to make loans.
(2)
If a loan is approved by an executive committee, the loan approval shall be reported to the board of directors at its next meeting.
(e)
(1)
A loan made under this section shall be reviewed every 6 months by the board of directors.
(2)
The loan may not be renewed or extended unless the renewal or extension has been approved by a resolution adopted at a meeting of the board of directors and recorded in the minutes of the meeting.
(f)
All loans to a director, officer, or employee of a banking institution are subject to the limitations imposed by § 3-601 of this article.
Md. Code Ann., Fin. Inst. § 5-513 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–513LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Check” means a draft that is drawn on a banking institution and payable on demand.
(3)
“Check facsimile” means a copy of an original check reproduced through photographic, photostatic, microfilm, microcard, miniature photographic, optical imaging, electronic, digital, magnetic, wireless, electromagnetic, or other process that accurately reproduces or forms a durable medium for reproducing the original check.
(4)
“Draft” has the meaning stated in § 3-104 of the Commercial Law Article.
(5)
“Truncated account” means a checking, negotiable order of withdrawal, or similar deposit account for which the original checks drawn on the account are not returned to the customer on a regular basis.
(b)
(1)
(i)
On request of a customer with a truncated account, a banking institution shall return any check the customer requires for tax audits or litigation or in connection with campaign finance reporting requirements under the Election Law Article, at no cost to the customer.
(ii)
If a banking institution returns check facsimiles instead of original checks to a customer under subparagraph (i) of this paragraph, on request of the customer, the banking institution shall return to the customer, at no additional cost to the customer, check facsimiles of the front and the back of the customer’s original checks that are at least the same size as the customer’s original checks.
(2)
Subject to the requirements of subsection (c)(1) and (2) of this section, in all other instances, on request of a customer with a truncated account, the banking institution shall return a maximum of 2 checks per month, at no cost to the customer.
(3)
A banking institution required to return a check to a customer under this subsection may return a check facsimile instead of the original check.
(c)
(1)
On request of a customer with a truncated account under which the customer does not receive check facsimiles on a regular basis, a banking institution shall return to the customer on a regular basis, at the banking institution’s option, either the customer’s original checks or check facsimiles of the front of the customer’s original checks.
(2)
On request of a customer with a truncated account under which the banking institution returns check facsimiles on a regular basis, a banking institution shall return to the customer on a regular basis, at no additional cost to the customer, check facsimiles of the front of the customer’s original checks that are at least the same size as the customer’s original checks.
Md. Code Ann., Fin. Inst. § 5-514 (2026)
Title 5. Banking Institutions -- General Provisions
Subtitle 5. Miscellaneous Regulations
§ 5–514LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Conventional home mortgage loan” has the meaning stated in § 11–501 of this article.
(3)
“Dwelling” has the meaning stated in § 11–501 of this article.
(4)
“Shared appreciation agreement” has the meaning stated in § 11–501 of this article.
(b)
(1)
This subsection applies only to a conventional home mortgage loan that is not already required by law or regulation by the State or federal government to be assumable in connection with the granting of absolute divorce.
(2)
A banking institution shall include in any conventional home mortgage loan a provision authorizing any of the existing borrowers to purchase the property interest of another borrower on the loan by assuming the seller’s portion of the mortgage if:
(i)
The assumption is in connection with the granting of a decree of absolute divorce; and
(ii)
The banking institution determines that the assuming borrower qualifies for the loan.
(c)
A banking institution shall disclose an assumption provision in any conventional home mortgage loan in writing to a loan applicant before the completion of the loan application.