Maryland § 5-503
Full text of Maryland Maryland Code § 5-503, with citation guidance and answers to common questions.
§ 5-503.
(a) A banking institution may buy and hold real property only as provided in this section.
(b) (1) Subject to the limitations in paragraph (3) of this subsection, a banking institution may buy or hold any real property that is necessary for the convenient transaction of its business.
(2) In addition to its offices, this property may include:
(i) A parking lot that the banking institution provides, with or without charge, primarily for the use of its customers; and
(ii) Any rental space that is located in the bank building or on adjoining land.
(3) Except as provided in paragraph (4) of this subsection, a banking institution may not invest in its bank building and furnishings more than an amount that equals 50 percent of its unimpaired capital and surplus or guaranty fund.
(4) If a banking institution is rated CAMELS 1 or 2 and remains well capitalized in accordance with the requirements of the Federal Deposit Insurance Act, it may invest in its bank building and furnishings an amount equivalent to 75 percent of its:
(i) Unimpaired capital, surplus, and undivided profits; or
(ii) Guaranty fund and undivided profits.
(c) (1) Subject to the limitations in paragraphs (2) and (3) of this subsection, a banking institution may hold any real property that the banking institution acquires:
(i) In satisfaction of a debt contracted in the course of its business; or
(ii) At sale on a judgment, decree, or mortgage foreclosure under a security that it holds.
(2) At a sale, a banking institution may not bid more than the amount of money that is necessary to satisfy the secured debts and costs.
(3) A banking institution:
(i) May not hold property acquired under this subsection for more than:
1. 8 years; and
2. Under conditions that the Commissioner sets, 2 additional years; and
(ii) Within 1 year after that period, shall:
1. Sell the property; or
2. Reduce the value of the property on its books to a value that the Commissioner approves.
Frequently Asked Questions About Maryland § 5-503
What does Maryland Code § 5-503 cover?
Section 5-503 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 § 5-503?
A common citation format is "Maryland Code § 5-503" (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 § 5-503 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.