Section 5-401 - Definitions. - Maryland Statutes

§ 5-401. Definitions.
 

(a)  In general.- In this subtitle the following words have the meanings indicated. 

(b)  Affiliate.- "Affiliate" means any association, corporation, business trust, statutory trust, or other similar organization that: 

(1) Is not a bank service corporation and is controlled by a banking institution through: 

(i) Direct or indirect ownership or control of more than 50 percent of the voting rights; 

(ii) Control of the election of a majority of the management; 

(iii) Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the management; 

(iv) Directors of the banking institution constituting a majority of the management of the organization; or 

(v) Any direct or indirect control by stockholders of the banking institution, if the stockholders own or control: 

1. More than 50 percent of the voting rights in the banking institution; or 

2. More than 50 percent of the voting rights exercised at the last election of directors of the banking institution; or 

(2) Controls a banking institution through: 

(i) Direct or indirect ownership or control of more than 50 percent of the voting rights; 

(ii) Control of the election of a majority of the directors of the banking institution; 

(iii) Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the directors; or 

(iv) The holding of substantially all of the capital stock of the banking institution by trustees for stockholders of the organization. 

(c)  Bank service corporation.- "Bank service corporation" means a corporation: 

(1) At least some of the stock of which is owned by a banking institution; and 

(2) That is organized to perform bank service corporation activities of the type permitted under applicable provisions of Title 12 of the United States Code to a bank service corporation owned exclusively by national banking associations. 

(d)  Management.- "Management" means the directors, trustees, or other persons exercising similar functions of an association, corporation, business trust, statutory trust, or other similar organization. 
 

[An. Code 1957, art. 11, § 72; 1980, ch. 33, § 2; ch. 807, § 1; 1984, ch. 741; 2008, ch. 89; 2010, ch. 611, § 2.]