Ch. 361

1993 LAWS OF MARYLAND

Article - Financial Institutions

1-205.

(A)     (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "DEPOSITORY INSTITUTION" MEANS A STATE-CHARTERED OR
FEDERALLY CHARTERED FINANCIAL INSTITUTION LOCATED IN THIS STATE THAT IS
AUTHORIZED TO MAINTAIN DEPOSIT OR SHARE ACCOUNTS.

(3)      "COMPLIANCE REVIEW COMMITTEE" MEANS:

(I)       AN AUDIT, LOAN, COMPLIANCE, OR OTHER REVIEW, OR
COMPLIANCE COMMITTEE APPOINTED BY THE BOARD OF DIRECTORS OF A
DEPOSITORY INSTITUTION; OR

(II)     ANY OTHER PERSON TO THE EXTENT THE PERSON ACTS IN AN
INVESTIGATORY CAPACITY AT THE DIRECTION OF A COMPLIANCE REVIEW
COMMITTEE.

(4)      "COMPLIANCE REVIEW DOCUMENTS" MEANS DOCUMENTS
PREPARED FOR OR CREATED BY A COMPLIANCE REVIEW COMMITTEE.

(5) "LOAN REVIEW COMMITTEE" MEANS A PERSON OR GROUP OF
PERSONS WHO, ON BEHALF OF A DEPOSITORY INSTITUTION, REVIEWS LOANS HELD
BY THE INSTITUTION FOR THE PURPOSE OF ASSESSING THE CREDIT QUALITY OF THE
LOANS, COMPLIANCE WITH THE INSTITUTION'S LOAN POLICIES, AND COMPLIANCE
WITH APPLICABLE LAWS AND REGULATIONS.

(4) (6) "PERSON" MEANS AN INDIVIDUAL, GROUP OF INDIVIDUALS,
BOARD, COMMITTEE, PARTNERSHIP, FIRM, ASSOCIATION, CORPORATION, OR OTHER
ENTITY.

(B)      THIS SECTION APPLIES TO A COMPLIANCE REVIEW COMMITTEE WHOSE
FUNCTIONS ARE TO EVALUATE AND SEEK TO IMPROVE:

(1)      LOAN UNDERWRITING STANDARDS;

(2)    ASSET QUALITY;

(3)      FINANCIAL REPORTING TO FEDERAL OR STATE REGULATORY
AGENCIES; OR

(4)      COMPLIANCE WITH FEDERAL OR STATE STATUTORY OR
REGULATORY REQUIREMENTS.

(C) A COMPLIANCE REVIEW COMMITTEE MAY CARRY OUT THE FUNCTIONS
DESCRIBED IN SUBSECTION (B) OF THIS SECTION BY:

(1) PREPARING OR DIRECTING THE PREPARATION OF REPORTS,
EVALUATIONS, ANALYSES, DOCUMENTS, AND SIMILAR MATERIALS; OR

- 1974 -