§ 3-206. General powers of commercial bank

   (a) General powers. -- 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.

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

   (1) Receive deposits of money on which interest may be paid;

   (2) Buy and sell coin and bullion;

   (3) Buy and sell foreign and domestic exchange;

   (4) Subject to § 3-604 of this title, accept drafts drawn on it;

   (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) Issue its debt instruments for money that is borrowed or received on deposit or for investment;

   (7) Lend money on personal security or on real or personal property;

   (8) Subject to § 3-605 of this title, become owner and lessor of personal property;

   (9) Subject to § 5-503 of this article, buy, hold, lease, and convey real property;

   (10) Pledge collateral to secure deposits of:

      (i) The federal government or its agencies; or

      (ii) Any state or its political subdivisions;

   (11) Pledge securities to secure the money of an estate administered under the federal bankruptcy laws;

   (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, as agent of any depository institution affiliate in:

      (i) Receiving deposits;

      (ii) Renewing time deposits;

      (iii) Closing loans;

      (iv) Servicing loans; or

      (v) Receiving payments on loans and other obligations; and

   (13) Exercise all of the powers usual in carrying on a banking business.

HISTORY: CA § 6-116, 6-137; 1980, ch. 33, § 2; 1995, ch. 213, § 2.