HARRY HUGHES, Governor

4373

SECTION 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.

Approved June 1, 1982.

CHAPTER 812

(Senate Bill 687)

AN ACT concerning

Banking Institutions - FDIC Membership

FOR the purpose of providing that banking institutions which
are not in the business of accepting deposits or
retaining funds in a deposit account are not required
to be members of the Federal Deposit Insurance
Corporation; and providing that a bank which accepts a
deposit as a trustee or custodian is not in the
business of accepting deposits and is not in the
business of retaining deposits if the deposits do not
remain in a deposit account of the institution for more
than two consecutive banking days; and providing that
any institution which is not in the business of
accepting or retaining deposits shall not be bound by
the provisions of Section 5-403(c)(2) of the Financial
Institutions Article governing affiliates.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 5-509

Annotated Code of Maryland

(1980 Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article - Financial Institutions

5-509.

(a) Each banking institution shall be a member of the
Federal Deposit Insurance Corporation UNLESS THE INSTITUTION
IS NOT IN THE BUSINESS OF ACCEPTING DEPOSITS OR RETAINING
FUNDS IN A DEPOSIT ACCOUNT. A BANKING INSTITUTION IS NOT IN
THE BUSINESS OF ACCEPTING DEPOSITS IF IT ACCEPTS A DEPOSIT
AS A TRUSTEE OR CUSTODIAN AND IS NOT IN THE BUSINESS OF