Bank Commissioner must approve all ap-
plications for a branch office made by a
State bank, trust company, or mutual sav-
ings institution, and must pass upon all
amendments to their charters. He must also
approve any mergers or voluntary liquida-
tions. On June 30 of each year he must
make a written report to the Governor
(Code 1957, 1976 Repl. Vol., Art. 11,
sees. 1-118).
The General Assembly of 1929 passed
what is known as the "Credit Union Law,"
which provides that any seven or more per-
sons, residents of this State, may apply to
the Bank Commissioner for permission to
organize a Credit Union. The Commis-
sioner supervises all such Credit Unions
(Code 1957, 1976 Repl. Vol., Art. 11, sees.
135-62.)
The Department also has jurisdiction over
industrial finance companies under the pro-
visions of the "Industrial Finance Law,"
passed in 1945. The Act generally provides
that no person or corporation may charge
interest or other charges in the aggregate
above that permitted by law 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 indi-
viduals transacting business under the terms
of this statute must secure a license from
the Bank Commissioner. At least once in
every thirty-six months, the Department is
required to examine each licensee; and each
licensee must submit to the Commissioner
an annual report setting forth such informa-
tion as the Commissioner may reasonably
require. The Bank Commissioner has the
power to revoke or suspend licenses for in-
fractions of the law. He also has the power
to exempt certain companies from the terms
of the "Industrial Finance Act." Auto-
matically exempted from the Act are those
companies and individuals that are doing
business under the terms of the "Small Loan
Law," which is administered by the Com-
missioner of Small Loans (1957 Code, 1968
Repl. Vol., Art. 11, sees. 163-205).
The Maryland Currency Exchange Law,
which became effective on January 1, 1960,
requires the Bank Commissioner to super-
vise and regulate the selling or issuing of |
checks, drafts, and money orders for a fee
or service charge. Persons who wish to
transact such business in Maryland must
qualify with the Bank Commissioner and
procure an annual license from him.
By Chapter 390, Acts of 1967, the Gen-
eral Assembly enacted a "Secondary Mort-
gage Law" which provided generally for the
licensing of persons in the business of nego-
tiating secondary mortgage loans and to pro-
vide for regulations. It placed the responsi-
bility upon the Bank Commissioner to li-
cense and regulate the business as well as
to supervise all licenses (Code 1957, 1972
Repl. Vol., Art. 66, sees. 39-71).
The Maryland Higher Education Loan
Corporation (Code 1957, 1971 Repl. Vol.,
Art. 43A, sec. 11) and the Development
Credit Corporation are subject to supervi-
sion by the Bank Commissioner (Code
1957, 1973 Repl. Vol., Art. 23, sec.426A).
Mortgage brokers or mortgage bankers
are required to register with the Bank Com-
missioner and pay an annual registration fee
(Code 1957, 1976 Repl. Vol., Art. 11, sec.
61A),
Staff: 40.
BANK REGULATION BOARD
Ex officio members: William L. Wilson, J.
Stevenson Peck, Roger W. Simpkins, C.
Edgar Smith, Jr.
Appointed members: Herbert Goidman,
1977; Luther W. Gregory, 1977; Paul A.
Meyer, 1977.
The Bank Regulation Board is comprised
of the Bank Commissioner, the Banking
Board and three persons not employed by
any banking institution who are appointed
by the Governor with the advice of the Sec-
retary of Licensing and Regulation for a
two year term. Of the three appointed mem-
bers, one shall be a certified public ac-
countant, one shall be an economist, and
one shall represent the public at large.
The Bank Regulation Board may by ma-
jority vote authorize State banks to engage
in banking activities as permitted by Fed-
eral law, notwithstanding restrictions and |
