Section 3-206 - General powers of commercial bank. - Maryland Statutes

§ 3-206. General powers of commercial bank.
 

(a)  General powers.- Except as otherwise provided in this article, a commercial bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law. 

(b)  Specific powers.- In addition to the powers set forth elsewhere in this article, a commercial bank may: 

(1) Receive deposits of money on which interest may be paid; 

(2) Buy and sell coin and bullion; 

(3) Buy and sell foreign and domestic exchange; 

(4) Subject to § 3-604 of this title, accept drafts drawn on it; 

(5) Issue letters of credit that authorize the holder to draw drafts on it or on its correspondents payable at sight or at a time not exceeding 1 year; 

(6) Issue its debt instruments for money that is borrowed or received on deposit or for investment; 

(7) Lend money on personal security or on real or personal property; 

(8) Subject to § 3-605 of this title, become owner and lessor of personal property; 

(9) Subject to § 5-503 of this article, buy, hold, lease, and convey real property; 

(10) Pledge collateral to secure deposits of: 

(i) The federal government or its agencies; or 

(ii) Any state or its political subdivisions; 

(11) Pledge securities to secure the money of an estate administered under the federal bankruptcy laws; 

(12) Without being deemed a branch of a depository institution affiliate, act in accordance with § 101 (d) of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, as agent of any depository institution affiliate in: 

(i) Receiving deposits; 

(ii) Renewing time deposits; 

(iii) Closing loans; 

(iv) Servicing loans; or 

(v) Receiving payments on loans and other obligations; and 

(13) Exercise all of the powers usual in carrying on a banking business. 
 

[CA §§ 6-116, 6-137; 1980, ch. 33, § 2; 1995, ch. 213, § 2.]