§ 5-405
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/md/financial-institutions/5-405A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–405.
(a)Except as provided in this section, or otherwise expressly provided by State law, a banking institution may not have a bank service corporation.
(b)If the Commissioner approves, a banking institution may have a bank service corporation.
(c)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)This section does not apply to any bank service corporation organized before July 1, 1984.