WILLIAM DONALD SCHAEFER, Governor                         S.B. 712

Depository Institutions - Compliance Review Committees

FOR the purpose of providing that certain information obtained by certain persons in
reviewing depository institutions is privileged under certain circumstances;
providing an exception certain exceptions; defining certain terms; providing for the
applicability of this Act; providing for the construction of this Act; and generally
relating to the disclosure and use of certain information obtained in connection with
reviews of depository institutions.

BY adding to

Article - Financial Institutions

Section 1-205

Annotated Code of Maryland

(1992 Replacement Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

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

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