3442

LAWS OF MARYLAND

Ch. 741

BY adding to

Article - Financial Institutions
Section 5-405 and , 5-406, and 5-407
Annotated Code of Maryland
(1980 Volume and 1983 Supplement)

BY repealing

Article - Financial Institutions
Section 12-101 through 12-106, inclusive
Annotated Code of Maryland
(1980 Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

Subtitle 4. Affiliates AND BANK SERVICE CORPORATIONS

5-401.

(a)  In this subtitle the following words have the meanings
indicated.

(b)  "Affiliate" means any association, corporation,
business trust, or other similar organization that:

(1) Is NOT A BANK SERVICE CORPORATION AND IS

controlled by a banking institution through:

(i) Direct or indirect ownership or control of
more than 50 percent of the voting rights;

(ii) Control of the election of a majority of
the management;

(iii) Direct or indirect ownership or control
of more than 50 percent of the voting rights exercised at the
last election of the management;

(iv) Directors of the banking institution
constituting a majority of the management of the organization; or

(v) Any direct or indirect control by
stockholders of the banking institution, if the stockholders own
or control:

1. More than 50 percent of the voting
rights in the banking institution; or