1. (a) Except as otherwise provided in this article, a commercial bank has all of the general powers granted to Maryland corporations under the Maryland General Corporation Law.¹

2. (b) In addition to the powers set forth elsewhere in this article, a commercial bank may:

   1. (1) Receive deposits of money on which interest may be paid;
   2. (2) Buy and sell coin and bullion;
   3. (3) Buy and sell foreign and domestic exchange;
   4. (4) Subject to § 3-604 of this title, accept drafts drawn on it;
   5. (5) Issue letters of credit that authorize the holder to draw drafts on it or on its correspondents payable at sight or at a time not exceeding 1 year;
   6. (6) Issue its debt instruments for money that is borrowed or received on deposit or for investment;
   7. (7) Lend money on personal security or on real or personal property;
   8. (8) Subject to § 3-605 of this title, become owner and lessor of personal property;
   9. (9) Subject to § 5-503 of this article, buy, hold, lease, and convey real property;

   10. (10) Pledge collateral to secure deposits of:

       1. (i) The federal government or its agencies; or
       2. (ii) Any state or its political subdivisions;
   11. (11) Pledge securities to secure the money of an estate administered under the federal bankruptcy laws;

   12. (12) Without being deemed a branch of a depository institution affiliate, act in accordance with § 101(d) of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994,² as agent of any depository institution affiliate in:

       1. (i) Receiving deposits;
       2. (ii) Renewing time deposits;
       3. (iii) Closing loans;
       4. (iv) Servicing loans; or
       5. (v) Receiving payments on loans and other obligations; and
   13. (13) Exercise all of the powers usual in carrying on a banking business.

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1995, c. 213, § 2, eff. Sept. 29, 1995.

Corporations and Associations, § 1-101 et seq.

Pub.L. 103-328, Sept. 29, 1994, 108 Stat. 2338.