§ 12-701
214 words·~1 min read·
/md/financial-institutions/12-701·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–701.
(a)A financial institution may apply to the Commissioner to be supervised and examined by the Commissioner to the same extent that a banking institution is supervised and examined under Title 5, Subtitle 2 of this article, other than § 5–203, if:
(1)The financial institution is a nonstock corporation under Title 5, Subtitle 2 of the Corporations and Associations Article which is recognized by the Internal Revenue Service as exempt from tax under § 501(c)(3) of the Internal Revenue Code, as amended;
(2)A majority and all controlling members of the financial institution are persons designated and approved by any banking institutions or national banking associations; and
(3)The financial institution is engaged solely in the extension of credit, making of loans and arranging of financing for socially or economically disadvantaged businesses for the purpose of:
(i)Encouraging and supporting the business and commercial development of such businesses; and
(ii)Participating in and supporting special State, federal, local or private industry programs intended to make available, offer, encourage, guarantee, or otherwise facilitate loan and other financing programs for socially or economically disadvantaged businesses.
(b)The Commissioner shall supervise and examine a financial institution that has applied to the Commissioner and has met the requirements set forth under subsection
(a)of this section.