§ 5-1003. Establishment of branch -- In Maryland

   (a) In general. -- A banking institution or an out-of-state bank may establish a branch in this State by:

   (1) Subject to subsection (b) of this section, opening a de novo branch;

   (2) Purchasing an existing branch from a bank or an insured depository institution; or

   (3) Converting former headquarters or retaining former branches following:

      (i) The purchase of all or substantially all of the assets of a bank or an insured depository institution; or

      (ii) A merger or a consolidation with a bank or an insured depository institution.

(b) Reciprocity. -- An out-of-state bank may establish a de novo branch in this State under subsection (a)(1) of this section only if the home state of the out-of-state bank allows a banking institution to open a de novo branch in its state.

(c) Prohibited activities. -- A banking institution or an out-of-state bank may not establish or maintain a branch in this State on the premises or property of an affiliate if the affiliate engages in commercial activities.

HISTORY: 1995, ch. 213, § 2; 2006, ch. 636; 2009, ch. 741.