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Can you summarize MDCM Fin. Inst. Section 9-640?
Short Summary
This legal document governs the powers and restrictions of a capital stock savings and loan association that has been converted to a commercial bank under the Code of Maryland, Financial Institutions, Title 9, SubTitle 6. The converted commercial bank is granted all the powers of, and is subject to all the restrictions imposed on, a commercial bank under the relevant article. However, there are certain exemptions provided. The commercial bank resulting from the conversion may hold assets or conduct business activities that do not conform with applicable law for a period of 5 years after the conversion, and with Commissioner approval, for an additional period not exceeding 5 years. It may also hold insurance assets or conduct insurance activities that were held or conducted before the conversion for a period of 2 years after the date of conversion, unless a different period is authorized by federal regulatory agencies. Apart from these exemptions, the commercial bank must comply with applicable law for a Maryland commercial bank regarding holding insurance assets or conducting insurance activities.
Whom does it apply to?
Capital stock savings and loan associations converted to commercial banks in Maryland
What does it govern?
Powers and restrictions of a capital stock savings and loan association converted to a commercial bank
What are exemptions?
The commercial bank resulting from the conversion may hold assets or conduct business activities that do not conform with applicable law for a period of 5 years after the conversion, and with Commissioner approval, for an additional period not exceeding 5 years. It may also hold insurance assets or conduct insurance activities that were held or conducted before the conversion for a period of 2 years after the date of conversion, unless a different period is authorized by federal regulatory agencies.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Maryland