Md. Code, Financial Institutions, Title 2

Md. Code, Financial Institutions, Title 2
in effect

Md. Code, Financial Institutions § 2-101

(a) There is a Commissioner of Financial Regulation in the Maryland Department of Labor. (b) There is an Office of Financial Regulation under the Commissioner in the Maryland Department of Labor. (c) The Commissioner is the head of the Office of Financial Regulation.

Md. Code, Financial Institutions § 2-102

(a) The Commissioner is appointed by the Secretary of Labor with the approval of the Governor and the advice and consent of the Senate. (b) The Commissioner serves at the pleasure of the Secretary of Labor. (c) The Commissioner shall have at least 5 years of experience in state or national banking regulation or management, which may include service as a bank director. (d) The Commissioner is entitled to the salary provided in the State budget.

Md. Code, Financial Institutions § 2-103

(a) With the approval of the Secretary of Labor, the Commissioner shall appoint: (1) A Deputy Commissioner for Depository Activities; and (2) A Deputy Commissioner for Non–Depository Activities. (b) The Deputy Commissioners appointed under subsection (a) of this section serve at the pleasure of the Commissioner and are employees of the Commissioner’s office. (c) (1) The Deputy Commissioner for Depository Activities shall have at least 5 years of experience in the regulation or management of financial institutions. (2) The Deputy Commissioner for Non–Depository Activities shall have at least 5 years of experience in the regulation or management of persons required to be licensed or registered under this article or the Commercial Law Article. (d) The Deputy Commissioners appointed under subsection (a) of this section are entitled to the salary provided in the State budget. (e) In addition to any other powers and duties set forth in this article: (1) The Deputy Commissioner for Depository Activities has the powers and duties of the Commissioner: (i) To the extent delegated by the Commissioner; (ii) If the office of the Commissioner is vacant; and (iii) If for any reason the Commissioner is unable to perform the duties of the office; and (2) The Deputy Commissioner for Non–Depository Activities has the powers and duties of the Commissioner to the extent delegated by the Commissioner.

Md. Code, Financial Institutions § 2-104

(a) (1) In this section the following words have the meanings indicated. (2) “Applicant” means an applicant for employment with the Commissioner. (3) “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services. (4) “Employee” means a full–time or part–time employee of the Commissioner, including a temporary employee or a contractual employee. (b) The Commissioner may employ a staff in accordance with the State budget. (c) The Commissioner shall apply to the Central Repository for a State and national criminal history records check for each applicant prior to an offer of employment. (d) The Commissioner may apply to the Central Repository for a State and national criminal history records check for an employee. (e) As part of the application for a criminal history records check, the Commissioner shall submit to the Central Repository: (1) Two complete sets of the legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation; (2) The fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; and (3) The mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check. (f) In accordance with §§ 10–201 through 10–234 of the Criminal Procedure Article, the Central Repository shall forward to the subject applicant or employee and the Commissioner the applicant’s or employee’s criminal history record information. (g) Information obtained from the Central Repository under this section: (1) Shall be confidential; (2) May not be redisseminated; and (3) Shall be used only for the employment purpose authorized by this section. (h) The subject of a criminal history records check under this section may contest the contents of the printed statement issued by the Central Repository as provided in § 10–223 of the Criminal Procedure Article. (i) In considering any felony or misdemeanor conviction of an individual as it relates to the individual’s qualification for employment with the Commissioner, the Commissioner shall consider: (1) The nature of the crime; (2) The relevance of the crime to the duties and responsibilities related to employment; (3) The length of time since the conviction; and (4) The behavior and activities of the individual since the conviction.

Md. Code, Financial Institutions § 2-104.1

§2–104.1. (a) (1) In this section the following words have the meanings indicated. (2) “Servicing” means: (i) Receiving scheduled periodic payments from a student loan borrower according to the terms of a student education loan; (ii) Applying the payments according to the student education loan terms; and (iii) Performing other administrative services. (3) “Student education loan” means any loan, notwithstanding any election of law or designation of status in any contract, used for financing postsecondary education or other postsecondary school–related expenses. (4) “Student loan borrower” means: (i) A resident of the State who has received or agreed to pay a student education loan; or (ii) A resident who shares repayment responsibility with a resident described under item (i) of this paragraph. (5) “Student Loan Ombudsman” means an individual, whether a paid employee or a volunteer, whom the Commissioner designates to serve as a liaison between student loan borrowers and student loan servicers. (6) (i) “Student loan servicer” means a person, regardless of location, responsible for servicing a student education loan to a student loan borrower. (ii) “Student loan servicer” includes a trust entity performing or receiving the benefit of student education loan servicing. (b) (1) The Commissioner shall designate an individual to serve as the Student Loan Ombudsman. (2) (i) Each student loan servicer in the State shall designate an individual to represent the student loan servicer in communications with the Student Loan Ombudsman. (ii) A student loan servicer shall provide the Student Loan Ombudsman the name, telephone number, and e–mail address of the designee required under subparagraph (i) of this paragraph. (c) The Student Loan Ombudsman, in consultation with the Commissioner, shall receive and process complaints about student education loan servicing, including: (1) Receiving and reviewing complaints from student loan borrowers; (2) Attempting to resolve complaints received under item (1) of this subsection, including by collaborating with institutions of higher education, student loan servicers, and any other participants in student loan lending, such as the Board of Regents of the University System of Maryland and the Maryland Higher Education Commission; and (3) Compiling and analyzing complaint data. (d) The Student Loan Ombudsman may refer any matter that is abusive, unfair, deceptive, or fraudulent to the Office of the Attorney General for civil enforcement or criminal prosecution. (e) The Student Loan Ombudsman, in consultation with the Commissioner, shall disseminate information about student education loans and servicing by: (1) Helping student loan borrowers understand their rights and responsibilities under the terms of student education loans; (2) Providing information to the public, State agencies, elected officials, and other individuals regarding student loan borrower problems and concerns; (3) Disseminating information about the availability of the Student Loan Ombudsman to assist those with student education loan servicing concerns, including disseminating the information to: (i) Student loan borrowers; (ii) Potential student loan borrowers; (iii) State higher education institutions; and (iv) Student loan servicers; and (4) Developing and disseminating information to increase awareness of and participation in the federal Public Service Loan Forgiveness Program in accordance with § 3–1804 of the Labor and Employment Article. (f) (1) The Student Loan Ombudsman shall: (i) Analyze and monitor the development and implementation of federal, State, and local laws, regulations, and policies on student loan borrowers; (ii) Disclose the complaint data it compiles and analyzes under subsection (c) of this section, including: 1. Noting any trends in the data; and 2. Identifying the names of student loan servicers engaging in any abusive, unfair, deceptive, or fraudulent practices; and (iii) Make recommendations regarding: 1. Statutory and regulatory methods to resolve student loan borrower problems and concerns; and 2. Necessary changes to State law to ensure that the student education loan servicing industry is fair, transparent, and equitable, including whether the State should require licensing or registration of student loan servicers. (2) On or before January 1 each year, the Student Loan Ombudsman shall report its findings and recommendations to the General Assembly in accordance with § 2–1257 of the State Government Article. (g) (1) On or before October 1, 2019, the Student Loan Ombudsman, in consultation with the Commissioner, shall establish a student loan borrower education course. (2) The course shall: (i) Include educational presentations and material about student education loans; and (ii) Review the following: 1. Common student education loan terms; 2. Documentation requirements for student education loan applications; 3. Monthly payment obligations for student education loans; 4. Income–based repayment options for student education loans; 5. Student education loan forgiveness programs; and 6. Student education loan disclosure requirements. (h) The Student Loan Ombudsman may refer any complaint from student loan borrowers to the Commissioner for investigation under § 26–604 of the Education Article.

Md. Code, Financial Institutions § 2-105.1

§2–105.1. (a) (1) In this section the following words have the meanings indicated. (2) “Collection agency” has the meaning stated in § 7–101 of the Business Regulation Article. (3) “Consumer reporting agency” has the meaning stated in § 14–1201 of the Commercial Law Article. (4) “Credit services business” has the meaning stated in § 14–1901 of the Commercial Law Article. (5) “Debt management services provider” has the meaning stated in § 12–901 of this article. (6) “Money transmission” has the meaning stated in § 12–401 of this article. (7) “Mortgage lender” has the meaning stated in § 11–501 of this article. (8) “Mortgage originator” has the meaning stated in § 11–601 of this article. (9) “Provide check cashing services” has the meaning stated in § 12–101 of this article. (10) “Sales finance company” has the meaning stated in § 11–401 of this article. (b) The Commissioner may adopt and enforce regulations reasonably necessary to carry out the authority and responsibility of the office of Commissioner. (c) (1) The Commissioner may participate in NMLS for: (i) Collection agencies; (ii) Debt management services providers; (iii) Mortgage lenders; (iv) Mortgage originators; (v) Persons who engage in money transmission; (vi) Persons who are required to be licensed under Title 11, Subtitle 2 of this article; (vii) Persons who are required to be licensed under Title 11, Subtitle 3 of this article; (viii) Persons who are required to be licensed under Title 12, Subtitle 1 of this article; (ix) Persons who are required to be licensed under Title 14, Subtitle 19 of the Commercial Law Article; (x) Sales finance companies; and (xi) Consumer reporting agencies. (2) To facilitate participation in NMLS, the Commissioner may adopt regulations that waive or modify the requirements of: (i) Title 11, Subtitles 4, 5, and 6 of this article with respect to sales finance companies, mortgage lenders, and mortgage originators; (ii) Title 12, Subtitles 1, 4, and 9 of this article with respect to providers of check cashing services, persons who engage in money transmission, and providers of debt management services; (iii) Title 11, Subtitle 2 of this article; (iv) Title 11, Subtitle 3 of this article; (v) Title 7 of the Business Regulation Article with respect to collection agencies; (vi) Title 14, Subtitle 19 of the Commercial Law Article; and (vii) Title 14, Subtitle 12 of the Commercial Law Article.

Md. Code, Financial Institutions § 2-107

On or before December 31 of each year, the Commissioner shall submit to the Governor and, as provided under § 2–1257 of the State Government Article, the General Assembly an annual report that includes, at a minimum, the following information concerning the most recently completed fiscal year ending June 30: (1) Operations of the office of the Commissioner; (2) Amendments proposed by the Commissioner regarding the laws the Commissioner administers; (3) Failures of licensed persons and State–chartered financial institutions; (4) A summary of the composite ratings of banking institutions and State–chartered credit unions; and (5) A breakdown by license category of the number of penalties assessed and instances of consumer recovery.

Md. Code, Financial Institutions § 2-108

(a) The Commissioner shall charge and collect, in advance, the following nonrefundable fees: (1) An examination fee for a new commercial bank charter under § 3–203 of this article......................................................................................................$15,000 (2) A filing fee for an agreement of consolidation, merger, or transfer of assets under § 3–703 of this article: (i) Between two commercial banks $3,000 (ii) Among three or more commercial banks $5,000 (3) An application fee for a banking institution to have an affiliate under § 5–403 of this article $750 (4) A fee for a conversion of a national banking association, a federal stock savings and loan association, or a federal stock savings bank into a commercial bank under § 3–801 of this article or a federal mutual savings bank into a savings bank under § 4–701.1 of this article: (i) Filing fee $7,000 (ii) Examination fee $3,000 (5) Subject to subsection (b) of this section, a branch fee for: (i) An application of a banking institution or other–state bank to open a branch under §§ 5–1003 and 5–1005(a) of this article $600; or (ii) An expedited notice of a banking institution or other–state bank to open a branch under §§ 5–1003 and 5–1005(b) of this article $400 (6) An application fee for a foreign banking permit under § 12–208 of this article......................................................................................................................$500 (7) A renewal fee for a foreign banking permit under § 12–210 of this article..............................................................................................................................$500 (8) A fee for a certificate of valid charter: (i) If requested by or on behalf of a banking institution $25 (ii) If requested by or on behalf of a person other than a banking institution.........................................................................................................................$50 (9) A fee for a certified copy of a document $50 (10) An application fee for conversion of a savings bank to a capital stock commercial bank under § 4–703 of this article………………………………….$5,000 (b) The branch fee under subsection (a)(5) of this section does not apply to: (1) A branch that is acquired by a banking institution through a merger or consolidation with, or transfer to the banking institution of all or substantially all of the assets of, a bank or an insured depository institution; or (2) An other–state bank chartered by a state that does not charge a fee to a banking institution for establishing a branch in that state.

Md. Code, Financial Institutions § 2-110

(a) The Commissioner and the Deputy Commissioners appointed under § 2–103 of this subtitle shall devote full time to their duties. (b) The Commissioner and the Deputy Commissioners appointed under § 2–103 of this subtitle may not: (1) Be an officer or director of any State banking institution or national banking association, or in any entity engaged in the business of making loans; or (2) Engage in any other business relating to banks and financial institutions or lending.

Md. Code, Financial Institutions § 2-111

(a) The Commissioner, employees of the Commissioner’s office, and other State employees acting under supervision of the Commissioner’s office may not own stock in any institution that is subject to examination or supervision by the Commissioner. (b) This section does not apply to a member share account of the Commissioner, an employee of the Commissioner’s office, or other State employees acting under the supervision of the Commissioner’s office held at a credit union that has a membership of over 60,000 State employees.

Md. Code, Financial Institutions § 2-112

(a) Except as provided in subsection (b) of this section, the Commissioner, employees of the Commissioner’s office, and other State employees acting under the supervision of the Commissioner’s office may not: (1) Become indebted to any institution that is subject to the jurisdiction of the Commissioner; or (2) Engage or be interested in the sale of securities of or in the negotiation of loans for others to or with any banking institution or credit union. (b) This section does not apply to a loan that is: (1) Made to a member of a credit union that has a membership of over 60,000 State employees; and (2) Approved by: (i) A credit committee approval under § 6-603(a)(1) of this article; and (ii) The Board of Directors. (c) The Commissioner, employees of the Commissioner’s office, and other State employees acting under the supervision of the Commissioner’s office may not: (1) Serve as an officer, director, or committee member of a credit union; or (2) Exercise any voting rights in a credit union. (d) Any person who violates any provision of this section is subject to forfeiture of that person’s office or employment.

Md. Code, Financial Institutions § 2-113

(a) In this section, “affiliate” has the meaning stated in § 5–401(b) of this article. (b) Except as provided in subsection (d) of this section, the investigative and enforcement powers of the Commissioner authorized under this subtitle are in addition to any investigative or enforcement powers of the Commissioner authorized under any other provision of law. (c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Office of Financial Regulation funding the positions necessary to implement the investigative and enforcement powers authorized under this subtitle. (d) Except as provided in §§ 2–113.1 and 2–117 of this subtitle, the provisions of §§ 2–114 through 2–117, inclusive, of this subtitle do not apply to: (1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State; (2) Any out–of–state bank, as defined in § 5–1001 of this article, having a branch that accepts deposits in this State; (3) Any institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State; or (4) An affiliate of an institution described in item (1), (2), or (3) of this subsection over which the Commissioner has no jurisdiction.

Md. Code, Financial Institutions § 2-113.1

§2–113.1. (a) A regulated person, as defined in § 2–117 of this subtitle, may not: (1) Issue an advertisement or make a representation that is false, misleading, or deceptive; (2) Impose, as a condition for a loan, a restriction on obtaining credit, property, or service from a competitor unless the restriction is reasonably necessary to secure the loan; (3) Impose, as a condition for a service, a restriction on obtaining credit, property, or service from a competitor; or (4) Engage in an act or a practice that is anticompetitive, unfair, deceptive, abusive, or injurious to the public interest. (b) The Commissioner may further define specific acts or practices that are anticompetitive, unfair, deceptive, abusive, or injurious to the public interest. (c) Notwithstanding § 2–113(d) of this subtitle, a financial institution or a subsidiary or an affiliate of a financial institution is subject to this section whenever the financial institution or subsidiary or affiliate engages in activity: (1) For which it maintains or is required to maintain a license or registration issued by the Commissioner or the State Collection Agency Licensing Board; or (2) Subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article.

Md. Code, Financial Institutions § 2-114

(a) The Commissioner may: (1) Make public or private investigations as the Commissioner considers necessary to: (i) Determine whether a person has violated a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction; or (ii) Aid in the enforcement of a law or in the prescribing of regulations, rules, and orders over which the Commissioner has jurisdiction; (2) Require or permit a person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning the matter to be investigated; and (3) Subject to the provisions of Title 4 of the General Provisions Article: (i) Deny records of an investigation; or (ii) Publish information concerning a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction. (b) For the purpose of an investigation or proceeding, the Commissioner or an officer designated by the Commissioner may administer oaths and affirmations, subpoena witnesses, compel witness attendance, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the Commissioner considers relevant or material to the inquiry. (c) (1) In case of contumacy by or refusal to obey a subpoena issued to a person, the circuit court of the county in which the person resides or transacts business, on application by the Commissioner, may issue to the person an order requiring the person to appear before the Commissioner or the officer designated by the Commissioner to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question. (2) Failure to obey the order of the court may be punished by the court as a contempt of court.

Md. Code, Financial Institutions § 2-115

(a) When the Commissioner determines that a person has engaged in an act or practice constituting a violation of a law, regulation, rule or order over which the Commissioner has jurisdiction, and that immediate action against the person is in the public interest, the Commissioner may in the Commissioner’s discretion issue, without a prior hearing, a summary order directing the person to cease and desist from engaging in the activity, provided that the summary cease and desist order gives the person: (1) Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and (2) Notice that the summary cease and desist order will be entered as final if the person does not request a hearing within 15 days of receipt of the summary cease and desist order. (b) When the Commissioner determines after notice and a hearing, unless the right to notice and a hearing is waived, that a person has engaged in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may in the Commissioner’s discretion and in addition to taking any other action authorized by law: (1) Issue a final cease and desist order against the person; (2) Suspend or revoke the license of the person; (3) Issue a penalty order against the person imposing a civil penalty not exceeding: (i) $10,000 for a first violation; and (ii) $25,000 for each subsequent violation; (4) Issue an order against the person requiring the person to take affirmative action to correct the violation, including making restitution to any person aggrieved by the violation; or (5) Take any combination of the actions specified in this subsection. (c) In determining the amount of financial penalty to be imposed under subsection (b) of this section, the Commissioner shall consider the following factors: (1) The seriousness of the violation; (2) The good faith of the violator; (3) The violator’s history of previous violations; (4) The deleterious effect of the violation on the public and the industry involved; (5) The assets of the violator; and (6) Any other factors relevant to the determination of the financial penalty. (d) Notice of any hearing under this section shall be given and the hearing shall be held in accordance with the Administrative Procedure Act.

Md. Code, Financial Institutions § 2-116

(a) When it appears to the Commissioner that a person is about to engage in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may bring an action in the circuit court of the county in which the person resides or transacts business to obtain one or more of the following remedies: (1) A temporary restraining order; or (2) A temporary or permanent injunction. (b) When it appears to the Commissioner that a person has engaged in an act or practice constituting a violation of a law, regulation, rule, or order over which the Commissioner has jurisdiction, the Commissioner may bring an action in the circuit court of the county in which the person resides or transacts business to obtain one or more of the following remedies: (1) A temporary restraining order; (2) A temporary or permanent injunction; (3) A civil penalty not exceeding: (i) $10,000 for a first violation; and (ii) $25,000 for each subsequent violation; (4) A declaratory judgment; (5) An order preventing access to the violator’s assets; (6) Rescission; (7) Restitution; and (8) Any other relief as the court deems just. (c) The Commissioner may not be required to post a bond in an action under this section.

Md. Code, Financial Institutions § 2-117

(a) In this section, “regulated person” means: (1) A person required to be licensed or registered under this article, whether or not the person maintains a license or registration; (2) A collection agency required to be licensed under the Business Regulation Article, whether or not the collection agency maintains a license; (3) A person required to be licensed by or registered with the Commissioner under applicable provisions of the Commercial Law Article, whether or not the person maintains a license or registration; or (4) A person otherwise engaging in activity subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction. (b) This section does not apply to: (1) Information relating to publicly adjudicated disciplinary or enforcement actions against a regulated person; or (2) Information or material provided to NMLS. (c) Except as otherwise provided in this article, a person, including the Commissioner and an employee of and the attorney for the Commissioner’s office, may not disclose any information obtained or generated in the course of exercising the Commissioner’s authority to examine regulated persons. (d) The Commissioner and an employee of and the attorney for the Commissioner’s office may disclose the information described in subsection (c) of this section: (1) If performing a public duty to report on or take special action relating to a regulated person; (2) If testifying as a witness in a criminal proceeding; (3) If informing a director, officer, member, partner, employee, or agent of a regulated person of the results of an examination; (4) If providing information to any state or federal agency having supervisory authority over the regulated person; and (5) If entering information into evidence under seal in a public enforcement hearing. (e) Subject to subsections (f), (g), and (l) of this section, and notwithstanding any other provision of State or federal law, the Commissioner may: (1) Enter into information sharing agreements with any federal or state regulatory agency having authority over regulated persons or with any federal or state law enforcement agency, including the Office of Foreign Assets Control, and any successor to these agencies, and any agency of a foreign country with primary responsibility for regulating regulated persons, if the agreements prohibit the agencies from disclosing any shared information about a regulated person without the prior written consent from the Commissioner regarding disclosure of the particular information; and (2) Exchange information about a regulated person, including information obtained or generated during an examination, with any federal or other state’s regulatory agency having authority over the regulated person or with any federal or state law enforcement agency, including the Office of Foreign Assets Control, and any successor to these agencies, and any agency of a foreign country with primary responsibility for regulating regulated persons. (f) Information shared by the Commissioner under subsection (e) of this section may not be disclosed by an agency under federal or other states’ laws governing the disclosure of public information, or by subpoena, discovery, or admission into evidence in private civil litigation or administrative process, without the prior written consent of the Commissioner. (g) If the Commissioner receives a record from an agency under an information sharing agreement authorized by subsection (e)(1) of this section and the agency expressly retains ownership of the record, either in writing or by law or regulation, the Commissioner: (1) May not disclose the record to any person that requests the record under Title 4, Subtitles 1 through 5 of the General Provisions Article; and (2) Shall forward the request for the record to the agency that owns the record for processing in accordance with the laws or regulations governing disclosure of the agency’s records. (h) Notwithstanding § 2–113(d) of this subtitle, a financial institution or a subsidiary or an affiliate of a financial institution is subject to this section whenever the financial institution or subsidiary or affiliate engages in activity: (1) For which it maintains or is required to maintain a license or registration issued by the Commissioner or the State Collection Agency Licensing Board; or (2) Subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article. (i) Any provision of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information described in subsection (c) of this section shall be superseded by the requirements of this section. (j) Except as otherwise provided in this section, all information disclosed by the Commissioner or an employee of or the attorney for the Commissioner’s office to any person as permitted under subsections (d) and (e) of this section: (1) Remains the property of the Commissioner; and (2) May not be further disclosed by any person without the prior written permission of the Commissioner. (k) A person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to: (1) Forfeiture of the person’s office or employment; and (2) A fine not exceeding $1,000 or imprisonment not exceeding 2 years or both. (l) This section does not authorize the Commissioner to share or exchange information in any way that is prohibited by federal law.

Md. Code, Financial Institutions § 2-117.1

§2–117.1. (a) This section does not apply to information relating to publicly adjudicated disciplinary or enforcement actions against banking institutions or credit unions and designated by the Commissioner for access to the public. (b) Except as otherwise provided in this article: (1) A person, including the Commissioner and an employee of and the attorney for the Commissioner’s office, may not disclose any information obtained or generated in the course of exercising the Commissioner’s authority to examine banking institutions or credit unions under this article; and (2) The Commissioner and the employees of and the attorney for the Commissioner’s office may not disclose: (i) The name of any debtor of a banking institution or credit union; or (ii) Any information about the private accounts with or transactions of a banking institution or credit union. (c) The Commissioner and an employee of and the attorney for the Commissioner’s office may disclose the information described in subsection (b) of this section: (1) If performing a public duty to report on or take special action about the business of a banking institution or credit union; (2) If testifying as a witness in a criminal proceeding; (3) If informing any director or authorized officer, employee, or agent of a banking institution or credit union of the results of an examination; (4) If providing information to any state or federal agency having supervisory authority over the banking institution or credit union; (5) If providing information about a banking institution to the Federal Deposit Insurance Corporation, if the banking institution: (i) Is applying for insurance from the Federal Deposit Insurance Corporation; and (ii) Asks the Commissioner to do so; (6) If providing information about a banking institution to the Board of Governors of the Federal Reserve Bank System or the Federal Reserve Bank of Richmond, if the banking institution: (i) Is applying for membership in the Federal Reserve System; and (ii) Asks the Commissioner to do so; (7) If providing information about a banking institution to the Office of the Comptroller of the Currency, if the banking institution: (i) Is applying to convert to, consolidate or merge with, or transfer assets to a national banking association; and (ii) Asks the Commissioner to do so; (8) If providing information about a banking institution to any other state bank regulatory agency if the banking institution: (i) Is applying to consolidate or merge with or transfer assets to an other–state bank; and (ii) Asks the Commissioner to do so; (9) If providing information about a credit union to a credit union share guaranty corporation, if the credit union: (i) Is insured by the credit union share guaranty corporation; or (ii) 1. Is applying for insurance from the credit union share guaranty corporation; and 2. Asks the Commissioner to do so; (10) If providing information about a credit union to the National Credit Union Administration, if the credit union: (i) 1. Is applying for insurance from the National Credit Union Administration; and 2. Asks the Commissioner to do so; or (ii) 1. Is applying to convert to or merge with a federal credit union; and 2. Asks the Commissioner to do so; (11) If providing information about a credit union to another state bank regulatory agency, if the credit union: (i) Is applying to merge with an other–state credit union; and (ii) Asks the Commissioner to do so; and (12) If entering information into evidence under seal in a public enforcement hearing. (d) Subject to subsections (e), (f), and (j) of this section, and notwithstanding any other provision of State law, the Commissioner may: (1) Enter into information sharing agreements with any federal or state regulatory agency having authority over banking institutions or credit unions, a federal home loan bank, or any federal or state law enforcement agency, including the Office of Foreign Asset Control, and any successor to these agencies, provided that the agreements prohibit the agencies from disclosing any shared information about a banking institution or credit union without the prior written consent from the Commissioner regarding disclosure of the particular information; and (2) Exchange information about a banking institution or a credit union, including information obtained or generated during an examination, with any federal or other state’s regulatory agency having authority over the banking institution or credit union or with any federal or state law enforcement agency. (e) Information shared by the Commissioner under subsection (d) of this section may not be disclosed by an agency under federal or other states’ laws governing the disclosure of public information, or by subpoena, discovery, or admission into evidence in private civil litigation or administrative process, without the prior written consent of the Commissioner. (f) If the Commissioner receives a record from an agency under an information sharing agreement authorized by subsection (d)(1) of this section and the agency expressly retains ownership of the record, either in writing or by law or regulation, the Commissioner: (1) May not disclose the record to any person that requests the record under Title 4, Subtitles 1 through 5 of the General Provisions Article; and (2) Shall forward the request for the record to the agency that owns the record for processing in accordance with the laws or regulations governing disclosure of the agency’s records. (g) Any provision of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information described in subsection (b) of this section shall be superseded by the requirements of this section. (h) Except as otherwise provided in this section, all information disclosed by the Commissioner or an employee of or the attorney for the Commissioner’s office to any person as permitted under subsections (c) and (d) of this section: (1) Remains the property of the Commissioner; and (2) May not be further disclosed by any person without the prior written permission of the Commissioner. (i) A person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to: (1) Forfeiture of the person’s office or employment; and (2) A fine not exceeding $1,000 or imprisonment not exceeding 2 years or both. (j) This section does not authorize the Commissioner to share or exchange information in any way that is prohibited by federal law.

Md. Code, Financial Institutions § 2-118

(a) In this section, “Fund” means the Banking Institution and Credit Union Regulation Fund established under this section. (b) There is a Banking Institution and Credit Union Regulation Fund that consists of: (1) All revenue received for the chartering and regulation of persons who engage in the business of a banking institution or credit union under this article; and (2) Any other fee, assessment, or revenue received by the Commissioner from banking institutions and credit unions under this article. (c) Notwithstanding subsection (b) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner from banking institutions and credit unions under this article into the General Fund of the State. (d) The purpose of the Fund is to pay all the costs and expenses incurred by the Commissioner that are related to the regulation of banking institutions and credit unions under this article, including: (1) Expenditures authorized under this article; (2) Investments authorized under § 2–118.1 of this subtitle; and (3) Any other expense authorized in the State budget. (e) (1) All the costs and expenses of the Commissioner relating to the regulation of banking institutions and credit unions under this article shall be included in the State budget. (2) Any expenditures from the Fund to cover costs and expenses of the Commissioner may be made only: (i) By an appropriation from the Fund approved by the General Assembly in the annual State budget; or (ii) By the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article. (3) If, in any given fiscal year, the amount of the revenue collected by the Commissioner and deposited into the Fund exceeds the actual appropriation for the Commissioner to regulate banking institutions and credit unions under this article, the excess amount shall be carried forward within the Fund. (f) (1) The State Treasurer is the custodian of the Fund. (2) The State Treasurer shall deposit payments received from the Commissioner into the Fund. (g) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State. (2) Unless otherwise provided by law, no part of the Fund may revert or be credited to: (i) The General Fund of the State; or (ii) A special fund of the State.

Md. Code, Financial Institutions § 2-118.1

§2–118.1. (a) (1) In this section the following words have the meanings indicated. (2) “Fund” means the Maryland Community Investment Venture Fund. (3) “Low– to moderate–income tract” has the meaning stated in § 5–203 of this article. (b) (1) There is a Maryland Community Investment Venture Fund. (2) The Fund is a private venture fund that: (i) Is an instrumentality of the State; and (ii) Uses public and private investment funds. (c) (1) Subject to paragraph (2) of this subsection, the purpose of the Fund is to develop opportunities for banking institutions and credit unions to better serve the needs of low– to moderate–income tracts by: (i) Investing in the development of financial product or financial product underwriting innovations that enhance access to capital, funding, and other financial services for businesses in low– to moderate–income tracts in the State; (ii) Deploying, testing, and evaluating the innovations for providing capital and funding to businesses in low– to moderate–income tracts in the State; and (iii) Promoting and making the innovations available to banking institutions and credit unions for use in enhancing access to capital, funding, and other financial services for businesses in low– to moderate–income tracts in the State. (2) With the approval of the Commissioner, the purpose of the Fund may be altered in a manner that is consistent with the intent and requirements of this section. (d) (1) (i) The Commissioner shall establish a governance structure for the Fund. (ii) The Commissioner may collaborate with investors in the Fund when establishing the governance structure. (2) The Commissioner, or the Commissioner’s designee, shall serve on the governing body of the Fund. (e) (1) The Commissioner may use up to $250,000 from the Banking Institution and Credit Union Regulation Fund established under § 2–118 of this subtitle to cover the expenses associated with establishing the Fund, including accounting, advisory, third–party service provider, marketing, and other necessary expenses. (2) To encourage private investment, the Commissioner may provide an initial equity capital investment in the Fund in an amount up to $2,500,000 from the Banking Institution and Credit Union Regulation Fund. (f) (1) Through June 30, 2028, the Commissioner may match an investment made in the Fund by a banking institution or credit union up to the amount of the assessment credit earned by the banking institution or credit union in accordance with § 5–203(d) or § 6–712(c)(4) of this article. (2) The Commissioner may not make an investment in the Fund after June 30, 2028. (g) All investment returns or return of capital from the Fund with respect to an investment authorized by the Commissioner shall be credited to the Banking Institution and Credit Union Regulation Fund. (h) At the direction of the Commissioner, and in addition to any customary and appropriate audits of the Fund, the governing body of the Fund shall obtain the services of an independent third party designated by the Commissioner on an annual basis to evaluate whether the investments made to the Fund comply with this section. (i) (1) If the Commissioner determines that separate private venture funds are necessary to accomplish the purpose of the Fund, the Commissioner may use money from the Fund to establish additional private venture funds. (2) An additional private venture fund established in accordance with this subsection shall comply with the requirements of subsections (b) through (f) of this section.

Md. Code, Financial Institutions § 2-119

For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Office of Financial Regulation for the purpose of regulating banking institutions and credit unions.

Md. Code, Financial Institutions § 2-120

(a) (1) In this section the following words have the meanings indicated. (2) “Board” means the State Collection Agency Licensing Board established under Title 7 of the Business Regulation Article. (3) “Fund” means the Non–Depository Special Fund established under this section. (4) “License” means any license issued by the Commissioner or the Board under applicable law. (5) “License category” refers to all licenses issued by either the Commissioner or the Board under any of the following provisions: (i) Title 11, Subtitle 2 of this article; (ii) Title 11, Subtitle 3 of this article; (iii) Title 11, Subtitle 4 of this article; (iv) Title 11, Subtitle 5 of this article; (v) Title 11, Subtitle 6 of this article; (vi) Title 12, Subtitle 1 of this article; (vii) Title 12, Subtitle 4 of this article; (viii) Title 12, Subtitle 9 of this article; or (ix) Title 7 of the Business Regulation Article. (6) “Licensed person” means any person required by law to be licensed by either the Commissioner or the Board, regardless of whether the person maintains the required license. (7) “Registered person” means any person required by law to be registered by the Commissioner or the Board, regardless of whether the person maintains the required registration. (8) “Regulated person” means: (i) A licensed person or registered person; or (ii) Any person otherwise engaging in activity subject to a provision of law, regulation, rule, or order over which the Commissioner has jurisdiction, other than activity subject to any of Titles 3 through 9 of this article. (b) There is a Non–Depository Special Fund that consists of: (1) All revenues received from licensing fees from each licensed person; (2) All revenues received from registration fees from each registered person; (3) All revenues received from annual assessments under subsection (h) of this section; (4) Income from the investments that the State Treasurer makes for the Fund; and (5) Any other fee, examination or investigation fee or assessment, or revenue received by the Commissioner or the Board with respect to any regulated person. (c) Notwithstanding subsection (b) of this section: (1) The Commissioner and the Board shall pay all fines and penalties collected from any regulated person into the General Fund of the State; and (2) Revenue received by the Commissioner for use of the Foreclosed Property Registry established under Title 7 of the Real Property Article shall be paid by the Commissioner to the Foreclosed Property Registry Fund established under § 7–105.14 of the Real Property Article. (d) The purpose of the Fund is to cover the direct and indirect costs of fulfilling the statutory and regulatory duties of the Commissioner and the Board related to regulated persons. (e) (1) The annual State budget shall include the costs and expenses of the Commissioner and the Board relating to subsection (d) of this section. (2) Any expenditures from the Fund to cover costs and expenses of the Commissioner and the Board relating to subsection (d) of this section may be made only: (i) With an appropriation from the Fund approved by the General Assembly in the annual State budget; or (ii) By the budget amendment procedure under § 7–209 of the State Finance and Procurement Article. (3) If, in any fiscal year, the amount of the revenue collected by the Commissioner and the Board and deposited into the Fund exceeds the actual appropriation for the Commissioner and the Board under paragraph (2)(i) of this subsection, the excess amount shall be carried forward within the Fund. (f) (1) The State Treasurer is the custodian of the Fund. (2) The State Treasurer shall deposit payments received from the Commissioner and the Board into the Fund. (g) (1) (i) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. (ii) The Fund may not be deemed a part of the General Fund of the State. (2) Unless otherwise provided by law, no part of the Fund may revert or be credited to: (i) The General Fund of the State; or (ii) Any other special fund of the State. (h) (1) In order to ensure the Fund contains sufficient amounts to achieve its purpose under subsection (d) of this section, the Commissioner may impose an annual assessment on any licensed person not more than once each year. (2) In calculating an assessment with respect to any licensed person, the Commissioner may consider: (i) The costs incurred by the Commissioner or the Board in supervising licensed persons of that license category; (ii) The type of business conducted in the State by that licensed person; (iii) The volume of business that licensed person conducts in the State; (iv) Assets of the licensed person; and (v) Any other factor the Commissioner considers appropriate. (3) A licensed person shall pay any assessment imposed under this section to the Commissioner within 30 calendar days after the assessment is imposed. (4) (i) Failure by a licensed person to timely pay an annual assessment under this section is a violation of this section. (ii) The Commissioner may take action for the violation against the licensed person and the license under applicable law.

Md. Code, Financial Institutions § 2-121

(a) Before using a trade name to engage in any activity requiring a license or registration from the Commissioner or the State Collection Agency Licensing Board, the licensed or registered person shall: (1) Register the trade name with the State Department of Assessments and Taxation; and (2) Obtain the approval of the Commissioner, or the State Collection Agency Licensing Board if licensed by the Board, to use the trade name by: (i) Designating on an original license or registration application or on a license or registration renewal application through NMLS the trade name under which the licensed or registered person will engage in licensed activity in the State; or (ii) If the person wishes to begin using a trade name before renewing a license or registration, notifying the Commissioner, or the State Collection Agency Licensing Board if licensed by the Board, in writing by listing the trade name in the person’s NMLS record. (b) After receiving approval from the Commissioner or from the State Collection Agency Licensing Board if licensed by the Board for the use of a trade name, the licensed or registered person shall: (1) Maintain registration of the trade name in accordance with § 1–406 of the Corporations and Associations Article and any implementing regulations; (2) List the trade name in NMLS; and (3) Immediately notify the Commissioner, or the State Collection Agency Licensing Board if licensed by the Board, if the person amends, cancels, or otherwise fails to renew the registration of the trade name.

Md. Code, Financial Institutions § 2-122

(a) The Commissioner may examine a third–party service provider as to services and activities performed on behalf of the regulated entity to the same extent as if the service or activity was performed by the regulated entity. (b) To the extent authorized by law, regulation, or any other agreement to which the Office of Financial Regulation is a party, the Commissioner shall notify a person licensed by the Commissioner of any examination initiated by the Commissioner of any third–party service provider who performs activities relating to financial services on behalf of the licensed person. (c) The power of the Commissioner to examine a third–party service provider under this section is not limited to services and activities conducted on the premises of a regulated entity. (d) After commencement of an examination of a person licensed by the Commissioner or any third–party service provider who performs activities relating to financial services on behalf of a person licensed by the Commissioner: (1) The Commissioner may request information from the third–party service provider who performs activities relating to financial services for the licensed person; and (2) If the licensed person has access to the information, the licensed person may provide the information to the Commissioner: (i) With the consent of the Commissioner; or (ii) If the third–party service provider fails to provide the information. (e) The Commissioner may collect a fee in connection with each examination to cover the cost of the examination from: (1) The examined third–party service provider; or (2) If the examined third–party service provider fails to cover the cost of the examination within 60 days after the date the Commissioner sends an invoice for the examination to the third–party service provider, the regulated entity that contracts with the third–party service provider. (f) The Commissioner may accept the results of an examination of a federal supervisory agency or responsible supervisory agency of another state as the results of an examination by the Commissioner under this section. (g) The Commissioner may examine: (1) All books, accounts, and records of a regulated entity or a third–party service provider as the Commissioner determines necessary to conduct a complete examination; and (2) Any officer, director, or employee of the regulated entity or, as appropriate, the third–party service provider, under oath, who may provide information on behalf of the regulated entity or the third–party service provider. (h) (1) The Commissioner is authorized to take an enforcement action against any third–party service provider who: (i) Refuses to submit to an examination; (ii) Refuses to pay any assessed fee for the cost of the examination; or (iii) Engages in activities that the Commissioner deems unsafe or unsound. (2) The Commissioner may advise any regulated entity that uses the services of a third–party service provider who refuses to submit to examination or engages in unsafe or unsound activities that the continued use of the third–party service by the regulated entity may constitute unsafe or unsound activity. (i) The Commissioner, and any employee of the Commissioner’s office, shall hold as confidential, as provided in §§ 2–117 and 2–117.1 of this subtitle, any information obtained or generated in the course of exercising the Commissioner’s authority to examine third–party service providers. (j) The examination powers of the Commissioner authorized under this section are in addition to any examination powers of the Commissioner authorized under any other provision of law.

Md. Code, Financial Institutions § 2-401

Subject to the evaluation and reestablishment provisions of the Program Evaluation Act, the provisions of this article that create the office of the Commissioner of Financial Regulation or relate to the powers and duties of the Commissioner and any regulations adopted under these provisions shall terminate and be of no effect after July 1, 2032.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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