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§ 3-206. General and specific powers of commercial banks

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 3. Banking Institutions--Commercial Banks
Subtitle 2. Formation and Powers (Refs & Annos)
MD Code, Financial Institutions, § 3-206
§ 3-206. General and specific powers of commercial banks
Currentness
In general
(a) 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.1
Powers of commercial bank
(b) 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 1994,2 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.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1995, c. 213, § 2, eff. Sept. 29, 1995.

Footnotes

1
Corporations and Associations, § 1-101 et seq.
2
Pub.L. 103-328, Sept. 29, 1994, 108 Stat. 2338.
MD Code, Financial Institutions, § 3-206, MD FIN INST § 3-206
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document