Section 5-1002 – Scope of Subtitle

    This subtitle sets forth the conditions under which:         (1)    An out-of-state bank may establish branches in this State; and         (2)    A banking institution may establish branches within or outside this State.

Section 5-1003 – Establishment of Branch — in Maryland

    (a)    A banking institution or an out–of–state bank may establish a branch in this State by:         (1)    Subject to subsection (b) of this section, opening a de novo branch;         (2)    Purchasing an existing branch from a bank or an insured depository institution; or         (3)    Converting former headquarters or retaining former branches following:             (i)    The purchase of all or substantially all […]

Section 5-1004 – Establishment of Branch — in Another State

    A banking institution may establish a branch in another state by any means permitted by the laws of that state or by federal law.

Section 5-1005 – Establishment of Branch — Prerequisites

    (a)    Except as provided in subsection (b) of this section, a banking institution that proposes to establish a branch in this State or in another state shall:         (1)    File with the Commissioner, at least 30 days before the intended opening date, a notice of intention to open a branch; and         (2)    Submit to the Commissioner any information the […]

Section 5-1006 – Approval of Branch — Considerations

    (a)    Subject to subsection (b) of this section, in deciding whether to approve a branch of a banking institution, the Commissioner shall consider:         (1)    If the branch is to be established in this State, whether the establishment of the branch will promote the public convenience;         (2)    Whether the applicant has sufficient capital to support the branch; and         (3)    Whether […]

Section 5-1007 – Approval of Branch — Time Limitations

    (a)    The Commissioner shall decide whether to approve the establishment of a branch of a banking institution within 30 days of receipt of the notice specified in § 5-1005 of this subtitle.     (b)    A branch shall be deemed approved if the Commissioner takes no action on the notice within the time limit specified in this section.

Section 5-1008 – Powers and Rights of Branches; Engaging in Business With Banks

    (a)    A banking institution that establishes a branch in another state may exercise at that branch all powers and rights permitted to banks in that state unless the Commissioner determines that the exercise of a power or right would threaten the safety and soundness of the banking institution.     (b)    An other-state bank that establishes a branch in […]

Section 5-1009 – Examinations and Supervision

    (a)    Subject to § 5-1012 of this subtitle, the Commissioner shall have the power to examine every branch of an other-state bank located in this State for the same purposes and to the same extent as the Commissioner may examine a branch of a banking institution.     (b)    The Commissioner may enter into agreements with bank supervisory agencies […]

Section 5-1010 – Enforcement Actions

    (a)    Subject to § 5-1012 of this subtitle, if the Commissioner finds that a branch of an other-state bank in this State is being operated in an unsafe or unsound manner or there is any violation of Maryland law by the branch of the other-state bank, the Commissioner may undertake enforcement actions as otherwise authorized under […]

Section 5-1011 – Reports of Condition and Income

    Subject to § 5-1012 of this subtitle, the Commissioner may require a bank that maintains a branch in this State to submit to the Commissioner its consolidated reports of condition and income in the form specified by the Federal Financial Institutions Examination Council.

Section 5-1012 – Cooperation With Other State or Federal Regulators

    With respect to the supervision, enforcement, and reporting requirements of §§ 5-1009, 5-1010, and 5-1011 of this subtitle, the Commissioner shall act primarily in cooperation with the home state regulator or federal regulator of the affected out-of-state bank.

Section 5-1013 – Transactions Resulting in 30 Percent or More Control of Deposits

    (a)    Except as provided in this section, the Commissioner may not approve a transaction resulting in the establishment of a branch or branches by a bank, other than a de novo branch, if on consummation of the transaction the applicant, including any insured depository institution affiliate of the applicant, would control 30 percent or more of […]

Section 5-1014 – Out-of-State Banks

    (a)    An out-of-state bank that proposes to establish a branch in this State:         (1)    Shall qualify under § 7-203 of the Corporations and Associations Article to do business in the State as a foreign corporation; and         (2)    Within 15 days of filing a branch application with the appropriate bank supervisory agency, shall provide the Commissioner with a copy […]

Section 5-1015 – Severability

    If any provision of this subtitle or the application thereof to any person or circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity does not affect other provisions or any other application of this subtitle that can be given effect without the invalid provision or application.