Commercial banks in Maryland will soon have an added degree of latitude in selecting their directors. On April 18, 2017, Governor Hogan approved Maryland Senate Bill 206, Financial Institutions – Qualifications of Directors of Commercial Banks – Residency (the “Amendment”). The Amendment, which repeals and reenacts, with amendments, Section 3-403 of the Maryland Code, Financial Institutions Article, provides that “[a]t least 30% of the directors of a commercial bank shall be residents of this State.” The Amendment, which takes effect on October 1, 2017, will decrease, as of its effective date, the percentage of commercial bank directors that must be residents of Maryland. Current law requires that a “majority” of commercial bank directors be State residents.
The summary, history, and text of the amended Maryland Code provision is available here. For more information about the Amendment and/or to inquire about MassPoint’s related banking regulation, compliance, and corporate governance services, please contact Hdeel Abdelhady at email@example.com or (202) 630-2512.