Maryland commissioner of Financial Regulation issues advisory on lending limits for banks and credit unions

State Issues Covid-19 Maryland Bank Compliance Credit Union

On April 17, the Maryland commissioner of Financial Regulation issued an advisory to address the legal lending limits for Maryland-chartered commercial banks and credit unions. The advisory provides that banks must follow either the Maryland lending limit or the federal lending limit; not both. Banks that are considering relief from the Maryland lending limit must comply with certain requirements. The commissioner also found that, in order to maintain parity with national banks, exemptions to the federal lending limit would be in the public interest and consistent with 12 U.S.C. § 84. Similarly, the governor authorized the commissioner to suspend certain requirements to allow a credit union to engage in transactions exceeding the total credit union limit provided certain requirements are satisfied.