Section 5-1003 - Establishment of branch - In Maryland. - Maryland Statutes

§ 5-1003. Establishment of branch - In Maryland.
 

(a)  In general.- A banking institution or an out-of-state bank may establish a branch in this State by: 

(1) Subject to subsection (b) of this section, opening a de novo branch; 

(2) Purchasing an existing branch from a bank or an insured depository institution; or 

(3) Converting former headquarters or retaining former branches following: 

(i) The purchase of all or substantially all of the assets of a bank or an insured depository institution; or 

(ii) A merger or a consolidation with a bank or an insured depository institution. 

(b)  Reciprocity.- An out-of-state bank may establish a de novo branch in this State under subsection (a)(1) of this section only if the home state of the out-of-state bank allows a banking institution to open a de novo branch in its state. 

(c)  Prohibited activities.- A banking institution or an out-of-state bank may not establish or maintain a branch in this State on the premises or property of an affiliate if the affiliate engages in commercial activities. 
 

[1995, ch. 213, § 2; 2006, ch. 636; 2009, ch. 741.]