Maryland Code, FINANCIAL INSTITUTIONS 5-509
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Maryland Code, FINANCIAL INSTITUTIONS 5-509
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
(a) Each banking institution shall be a member of the Federal Deposit Insurance Corporation unless the institution is not in the business of accepting deposits or retaining funds in a deposit account. A banking institution is not in the business of accepting deposits if it accepts a deposit as a trustee or custodian and is not in the business of retaining deposits if the deposits do not remain in a deposit account of the institution for more than two consecutive banking days. Any institution which is not in the business of accepting deposits or retaining funds in a deposit account as defined in this section shall not be bound by the provisions of § 5-403(c)(2) of this title.
(b) If approved by a majority of its directors, a banking institution may:
(1) Become and participate as a member of the Federal Reserve System; or
(2) Withdraw from the system.