Section 5-405 - Bank service corporation. - Maryland Statutes

§ 5-405. Bank service corporation.
 

(a)  In general.- Except as provided in this section, or otherwise expressly provided by State law, a banking institution may not have a bank service corporation. 

(b)  Approval by Commissioner.- If the Commissioner, after receiving the advice of the Banking Board, approves, a banking institution may have a bank service corporation. 

(c)  Criteria for approval.- On application of the banking institution, a bank service corporation shall be approved if: 

(1) The Commissioner determines that approval is: 

(i) Reasonably required to protect the welfare of the general economy of the State and of the banking institution; and 

(ii) Not detrimental to the public interest or to the banking institution; 

(2) The approval imposes the same conditions that federal law requires or permits as to a bank service corporation owned exclusively by national banking associations; and 

(3) The transaction complies with the rules, regulations, and conditions that the Commissioner adopts. 

(d)  Exemption.- This section does not apply to any bank service corporation organized before July 1, 1984. 
 

[1984, ch. 741; 1996, ch. 326, § 2.]