Section 5-509 - Federal Deposit Insurance Corporation and Reserve System memberships. - Maryland Statutes

§ 5-509. Federal Deposit Insurance Corporation and Reserve System memberships.
 

(a)  Federal Deposit Insurance Corporation.- Each banking institution shall be a member of the Federal Deposit Insurance Corporation unless the institution is not in the business of accepting deposits or retaining funds in a deposit account. A banking institution is not in the business of accepting deposits if it accepts a deposit as a trustee or custodian and is not in the business of retaining deposits if the deposits do not remain in a deposit account of the institution for more than two consecutive banking days. Any institution which is not in the business of accepting deposits or retaining funds in a deposit account as defined in this section shall not be bound by the provisions of § 5-403 (c) (2) of this article. 

(b)  Federal Reserve System.- If approved by a majority of its directors, a banking institution may: 

(1) Become and participate as a member of the Federal Reserve System; or 

(2) Withdraw from the system. 
 

[An. Code 1957, art. 11, § 84; 1980, ch. 33, § 2; ch. 63; 1982, ch. 812.]