Section 1-201 – Applicability of Maryland General Corporation Law

    Except as otherwise expressly provided by this article, the Maryland General Corporation Law applies to a financial institution and to all of its corporate acts.

Section 1-202 – Acknowledgments and Verifications

    (a)    A requirement in this article that a document be acknowledged means that the document shall be acknowledged by an individual:         (1)    As the act of that individual; or         (2)    If the document is that of a corporate or other entity, as the act of that entity.     (b)    A requirement in this article that a document be verified means […]

Section 1-203 – Compliance With Workers’ Compensation Act

    Before any license or permit may be issued under this article to an employer to engage in an activity in which the employer may employ a covered employee, as defined in § 9-101 of the Labor and Employment Article, the employer shall file with the issuing authority:         (1)    A certificate of compliance with the Maryland Workers’ […]

Section 1-204 – Multiple-Party Accounts

    (a)    A provision in an account agreement for a transfer on death in compliance with this section is nontestamentary and shall be effective according to the provisions of this section. Transfers pursuant to this section are effective in the form and manner prescribed by this section and are not to be considered testamentary.     (b)    (1)    In this section […]

Section 1-205 – Compliance Review Documents

    (a)    (1)    In this section the following words have the meanings indicated.         (2)    “Compliance review committee” means:             (i)    An audit, loan review, or compliance committee appointed by the board of directors of a depository institution; or             (ii)    Any other person to the extent the person acts in an investigatory capacity at the direction of a compliance review committee.         (3)    “Compliance review […]

Section 1-206 – Authorized Collateral

    (a)    In this section, “fiduciary deposit surety bond” means a surety bond that:         (1)    Guarantees the payment of deposited funds awaiting distribution or investment held by a financial institution in a fiduciary capacity; and         (2)    Subject to the terms and conditions of the bond, is irrevocable and absolute.     (b)    Except as provided in §§ 6-202 and 6-209 of the […]

Section 1-208 – Real Estate Appraisal Policies

    (a)    The directors and officers of a financial institution shall develop and implement written:         (1)    Policies governing real estate appraisal; and         (2)    Procedures governing the hiring and performance of real estate appraisers.     (b)    The procedures required under subsection (a)(2) of this section shall set forth specific factors to be considered by the financial institution’s directors and officers, including:         (1)    Whether […]

Section 1-209 – Regulation of Extension of Credit

    (a)    Only the State may enact a law which purports to regulate extensions of credit made by a financial institution.     (b)    This section does not:         (1)    Affect federal law preemption of State law;         (2)    Restrict or otherwise affect local laws that establish property ownership or the rights and obligations of property owners;         (3)    Restrict or otherwise affect a local government’s […]

Section 1-210 – Certificates of Deposit; Claims for Payment

    (a)    (1)    In this section the following words have the meanings indicated.         (2)    “Account agreement” means one or more written instruments that establish when a certificate of deposit is payable.         (3)    “Certificate of deposit” means a deposit or share account at a depository institution that:             (i)    Is payable by the depository institution at the expiration of a specified time; and […]

Section 1-211 – Savings Promotion Raffles

    (a)    (1)    In this section the following words have the meanings indicated.         (2)    “Depository institution” means a financial institution that:             (i)    Is located in this State or maintains a branch in this State; and             (ii)    Is authorized to maintain qualifying accounts.         (3)    “Eligible customer” means an individual who:             (i)    Maintains a qualifying account at a depository institution;             (ii)    Is an adult; and             (iii)    Is […]

Section 1-212 – Security Questions and Measures Required by Financial Institution

    If a financial institution requires a customer to provide an answer to a security question in connection with the provision of an account, the financial institution shall allow the customer to choose from at least two security questions options for each required security question.

Section 1-213 – Determination of Creditworthiness — Evaluation Rules and Other Alternative Methods

    (a)    (1)    In this section the following words have the meanings indicated.         (2)    “Credit union” has the meaning stated in § 6–101 of this article.         (3)    “Savings and loan association” has the meaning stated in § 8–101 of this article.     (b)    This section applies only to:         (1)    A banking institution;         (2)    A credit union;         (3)    A savings and loan association;         (4)    A community development […]