PARRIS N. GLENDENING, Governor

Ch. 213

CHAPTER 213
(Senate Bill 833)

AN ACT concerning

Financial Institutions - Interstate Banking Bank Acquisitions and Branching

FOR the purpose of repealing certain provisions regulating the acquisition of stock in
banks in the State by certain bank holding companies or their subsidiaries; repealing
certain provisions regulating the acquisition of certain banks and bank holding
companies by certain banks or bank holding companies; repealing certain provisions
regulating the establishment of branches by a banking institution; altering certain
provisions of law governing stock acquisitions to exempt certain acquisitions by bank
holding companies; establishing the conditions under which a bank holding
company may acquire a Maryland bank holding company or a Maryland bank;
prescribing the form of application for making an acquisition and setting the
application fee and standards for approval; requiring certain reports to be filed with
the Bank Commissioner under certain circumstances; expanding the powers of
certain commercial banks; authorizing banks chartered and primarily regulated by
another state to engage in certain consolidations, mergers, and transfers of assets;
establishing governing law for certain banks involved in certain consolidations,
mergers, or transfers of assets; altering the range of certificates that may be
recorded to evidence certain consolidations, mergers, or transfers of assets;
requiring certain other-state banks to submit certain statements and reports under
certain circumstances; establishing conditions under which an out-of-state bank
may establish branches in the State and conditions under which a banking
institution may establish branches in this State or outside the State; setting a certain
branch fee and standards for approval of a branch of a banking institution;
authorizing the Bank Commissioner to examine branches in the State of
out-of-state banks to a certain extent; authorizing the Bank Commissioner to adopt
certain regulations and enter into certain agreements with bank supervisory
agencies of other states; authorizing the Bank Commissioner to take certain
enforcement actions to enforce certain provisions of law and with respect to a
branch of an out-of-state bank under certain circumstances; establishing certain
limitations in the establishment or acquisition of a branch in the State by an
out-of-state bank; defining certain terms; altering certain definitions; expanding
the definition of "trust company" to include an out-of-state financial institution
that has an office in this State that is not its principal office and that accepts
deposits at its office in this State; making conforming changes; making certain
provisions of this Act severable; providing for the effective date of this Act; altering
certain definitions; providing that certain licensing provisions do not apply to certain
persons and certain banks; providing that certain provisions do not apply to certain
financial institutions; and generally relating to the regulation of certain actions by
banks, banking institutions, bank holding companies, and branches of banks.

BY repealing

Article - Financial Institutions

Section 5-501; 5-901 through 5-908, inclusive, and the subtitle "Subtitle 9.

- 1989 -