Maryland § 3-312
Full text of Maryland Maryland Code § 3-312, with citation guidance and answers to common questions.
§ 3-312.
(a) If the Commissioner approves, a commercial bank may issue and sell debt instruments that are repayable on the terms and bear the rate of interest, if any, stated in the instruments.
(b) The issuance of a debt instrument does not impair the capital stock of a commercial bank if the amount of the debt instrument is represented by cash or sound assets that exceed the impairment determined by the Commissioner.
(c) The holder of a debt instrument is not subject to any liability imposed on stockholders under any law of this State.
(d) In the event of liquidation, a debt instrument is:
(1) Subordinate to the claims of any depositor or creditor; and
(2) Preferred to the claim of any stockholder.
(e) (1) Each holder of a debt instrument has the voting rights that the charter provides and the Commissioner approves.
(2) A reference in this article to a required vote of the holders of the capital stock of a commercial bank includes holders of debt instruments to the extent that they are entitled to vote under this subsection.
(f) Before a commercial bank retires or pays any debt instrument:
(1) It shall obtain the approval of the Commissioner; and
(2) Any existing deficit in its capital, disregarding any debt instrument to be retired, shall be paid in cash so that the sound capital assets of the commercial bank are at least equal to its capital stock.
Frequently Asked Questions About Maryland § 3-312
What does Maryland Code § 3-312 cover?
Section 3-312 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 3-312?
A common citation format is "Maryland Code § 3-312" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 3-312 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.