A representative of Citicorp of New York, the parent company of the nation's second-largest bank and of NAC credit card, said today that a proposal to control activities of out-of-state banking companies in Maryland eventually could raise the cost ot NAC customers and overburden the company and state with paperwork.

Frank Goldstein, testifying before the Maryland House Committee on Economic Matters, said the proposed bill places restrictions on out-of-state banks that are not imposed on state banks and puts Citicorp at an "unfair competitive disavantage."

The bill, pushed by the Maryland Bankers Association and the state bank commissioner, would require out-of-state banks to receive permits from the bank commissioner that must be renewed every two years before they can operate an automatic 24-hour-type teller unit, a loan production office, a leasing operation or operate electronic machinery in stores to approve credit card purchases.

Out-of-state banks are not now required to report their activities to state officials.

State banks must apply for permission to operate, said Bank Commissioner W.H. Holden Gibbs, but they are not required to renew applications every two years.

Goldstein was particularly perturbed with the controls on the electronic credit card verification machines used to approve credit card purchases in stores. The machinery is relatively new, Goldstein said, and replaces store clerks telephoning an office for verification. Machinery must be placed in every store where the credit card is accepted.

Goldstein was the only opponent of the bill to testify today. William Weaver, of the Maryland Bankers Association, and Gibbs said they knew of only one other out-of-state bank operating in Maryland that would be affected by the bill. First National Bank of Chicago operates a loan production office in Maryland, Weaver said, which negotiates loans in the state but under law must transact the deal in Chicago.

Few, if any, out of-state banks operate the 24-hour-tellers because they are prohibited by federal law from activities affecting deposits.

"We felt with the growth of electronic transfer in Maryland it should be orderly," Weaver said in explaining the purpose of the bill.