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Can you summarize MDCM Fin. Inst., Title 5, Subtitle 3?
Short Summary
This legal document, part of the Code of Maryland, specifically Title 5, SubTitle 3, governs the requirements and obligations related to interest bearing accounts in banking institutions. It applies to both banking institutions and their customers. The document outlines the information that banking institutions must provide to customers regarding their interest bearing accounts, including the annual rate of interest, dates of rate changes, method of calculating interest, compounding, and availability of funds. It also mandates that banking institutions pay interest on specific purpose accounts for a period of 1 year or less at a rate not less than the weekly average yield on United States Treasury securities. Failure to comply with the requirements may result in liability for foreseeable losses incurred by the customer and payment of reasonable attorney’s fees. The document also mentions the option for banking institutions to comply with final regulations adopted by the Federal Reserve Board. Overall, this document ensures transparency and protection for customers with interest bearing accounts in banking institutions.
Whom does it apply to?
Banking institutions and their customers
What does it govern?
Requirements and obligations related to interest bearing accounts in banking institutions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Liability for foreseeable losses incurred by the customer and payment of reasonable attorney's fees
Jurisdiction
Maryland