Supervision of Business

BANK COMMISSIONER

William F. Hilgenberg, Bank Commissioner, 1963
John D. Hospelhorn, Deputy Bank Commissioner
H. E. Meeks, Chief Examiner
Frank L. Wilson, Senior Examiner

301 W. Preston Street, Baltimore I Telephone: Vernon 7-9000

The office of the Bank Commissioner was created in 1910. The Bank
Commissioner is appointed by the Governor for a term of four years.
The Department has general supervision over all banking institutions
in the State other than national banks. It must examine each institu-
tion at least twice in eighteen months and at such other times as the
Commissioner may deem expedient and at any time upon request of
the board of directors of the institution. Whenever the capital stock
of an institution is reduced by impairment, and such impairment is
not made good as prescribed by law, or whenever it is found that an
institution is being conducted in an unsafe manner, the Bank Commis-
sioner may take possession, as provided by law, and retain possession
until it resumes business or is finally liquidated. If a banking institu-
tion, excepting a national bank, fails, the Bank Commissioner acts as
receiver, liquidates its assets, and terminates its affairs under the
jurisdiction of the court. The Commissioner may delegate this power
to the Deputy Commissioner or a senior examiner. Every bank and
trust company is required to submit to the Bank Commissioner, under
oath, at least three reports in each calendar year; such reports must
exhibit in detail the resources and liabilities of the institution and
show its true condition. These reports are published in the local news-
papers. All mutual, savings institutions are required to report their
condition to the Commissioner on June 30 and on December 31 of each
year. The December 31 report of such institutions is required to be
published. The Commissioner's office examines the reports, and when
necessary, verifies them and corrects any irregularities or recommends
changes.

All new banking institutions must organize under the supervision
of the Department and must obtain from it a certificate before opening
for business. The Bank Commissioner must approve all applications
for a branch office made by a State bank, trust company, or mutual
savings institution, and must pass upon all amendments to their
charters. He must also approve any mergers or voluntary liquidations.
On February 10 of each year he must make a written report to the
Governor (Code 1957, Art. II, sees. 1-26, 28-134).

The General Assembly of 1929 passed what is known as the "Credit
Union Law," which provides that any seven or more persons, residents
of this State, may apply to the Bank Commissioner for permission to
organize a Credit Union. The Commissioner supervises all such Credit
Unions (Code 1957, Art. II, sees. 136-62).

The Department also has jurisdiction over industrial finance loan
companies under the provisions 'of the "Industrial Finance Law,"
passed in 1945. The Act generally provides that no person or corpora-
tion may charge interest or other charges in the aggregate above that
permitted by Taw on loans of fifteen hundred dollars or less if this
person or corporation is not a licensee under the terms of the law. All
companies and individuals transacting business under the terms of this
statute must secure a license from the Bank Commissioner. At least