# Financial Institutions (GFI)

## Title 5. Banking Institutions -- General Provisions

### Subtitle 5. Miscellaneous Regulations

#### Section 5-509

(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 Sec. 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.

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