Section 5-401 - Definitions.
§ 5-401. Definitions.
(a) In general.- In this subtitle the following words have the meanings indicated.
(b) Affiliate.- "Affiliate" means any association, corporation, business trust, statutory trust, or other similar organization that:
(1) Is not a bank service corporation and is controlled by a banking institution through:
(i) Direct or indirect ownership or control of more than 50 percent of the voting rights;
(ii) Control of the election of a majority of the management;
(iii) Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the management;
(iv) Directors of the banking institution constituting a majority of the management of the organization; or
(v) Any direct or indirect control by stockholders of the banking institution, if the stockholders own or control:
1. More than 50 percent of the voting rights in the banking institution; or
2. More than 50 percent of the voting rights exercised at the last election of directors of the banking institution; or
(2) Controls a banking institution through:
(i) Direct or indirect ownership or control of more than 50 percent of the voting rights;
(ii) Control of the election of a majority of the directors of the banking institution;
(iii) Direct or indirect ownership or control of more than 50 percent of the voting rights exercised at the last election of the directors; or
(iv) The holding of substantially all of the capital stock of the banking institution by trustees for stockholders of the organization.
(c) Bank service corporation.- "Bank service corporation" means a corporation:
(1) At least some of the stock of which is owned by a banking institution; and
(2) That is organized to perform bank service corporation activities of the type permitted under applicable provisions of Title 12 of the United States Code to a bank service corporation owned exclusively by national banking associations.
(d) Management.- "Management" means the directors, trustees, or other persons exercising similar functions of an association, corporation, business trust, statutory trust, or other similar organization.
[An. Code 1957, art. 11, § 72; 1980, ch. 33, § 2; ch. 807, § 1; 1984, ch. 741; 2008, ch. 89; 2010, ch. 611, § 2.]