reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part II - Powers of a Credit Union › Section 6-313 - Powers Authorized by Federal Law

(a)    Notwithstanding any other provision of the laws or regulations of the State and subject to subsection (b) of this section, a credit union may engage in any additional activity, service, or other practice in which, under federal law or regulation, federal credit unions may engage, subject to the same conditions that federal law requires or allows as to federal credit unions.
(b)    (1)    A credit union shall provide the Commissioner with written notice at least 45 calendar days before engaging in any activity, service, or other practice authorized under subsection (a) of this section.
(2)    The notice required under paragraph (1) of this subsection shall include a description of the proposed activity, service, or other practice, including:
(i)    The specific authority for the activity, service, or other practice; and
(ii)    Any condition that federal law requires or allows as to federal credit unions.
(3)    The credit union may begin to perform the activity, service, or other practice on the first business day after the 45th calendar day from the date the Commissioner receives the notice under paragraph (1) of this subsection unless the Commissioner:
(i)    Specifies a different date; or
(ii)    Prohibits the activity, service, or other practice.
(c)    The Commissioner may extend the 45–day period under subsection (b)(3) of this section if the Commissioner determines that the credit union’s notice requires additional information or additional time for analysis.
(d)    The Commissioner may prohibit a credit union from performing the activity, service, or other practice described in the notice provided under subsection (b) of this section if the Commissioner determines that performing the activity, service, or other practice would:
(1)    Adversely affect the safety and soundness of the credit union;
(2)    Be detrimental to the welfare of the general economy of the State; or
(3)    Be detrimental to the public interest or to credit unions.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part II - Powers of a Credit Union › Section 6-314 - Capital

(a)    Without being required to take any action to perfect a lien, a credit union has a lien and a right to a setoff on the shares and deposits of a member in any individual, multiple party, or other type of account, including any dividends or interest payable on those shares or deposits, to the extent of any delinquency or default of the member on:
(1)    Any outstanding loan, whether or not matured, on which the member is liable to the credit union as maker, comaker, surety, or endorser; and
(2)    Any dues, charges, fees, fines, or other amount payable by the member.
(b)    If a member resigns or is expelled, the credit union may cancel that member’s shares and apply their withdrawal value against any amount owed to the credit union by the member.
(c)    A credit union may allow a withdrawal of a member’s shares or deposits without affecting the credit union’s lien or right to a setoff.
(d)    A credit union may refuse to allow a withdrawal of a member’s shares or deposits to the extent of any delinquency or default of the member to the credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part III - Members of a Credit Union › Section 6-317 - Meetings of Members; Voting

(a)    (1)    The annual meeting of the members shall be held as provided by the bylaws and at the time and place that the board determines.
(2)    Special meetings of members shall be held:
(i)    On order of the directors or the supervisory committee; or
(ii)    At the request of 10 percent of the members.
(3)    Notice of each meeting shall be given as the bylaws provide.
(b)    (1)    Each member in good standing has one vote, notwithstanding the number of shares that the member holds.
(2)    A member may not vote by proxy. However, a member that is not an individual may be represented by an individual authorized in writing by the member to represent it.
(3)    A member may not vote or hold office if the member is less than 18 years of age.
(c)    (1)    At any meeting of the members, the members may:
(i)    Decide any question of interest to the credit union;
(ii)    Except for any instance where, in the judgment of the board, it would result in damage to the credit union’s financial soundness or would otherwise force the board to abrogate their fiduciary responsibility, overrule any decision of the board; and
(iii)    Amend the bylaws or articles of incorporation as provided in § 6-320 of this subtitle.
(2)    At the annual meeting of the members, the members shall elect directors, unless they are elected as provided in § 6-329 of this subtitle or as provided in the bylaws for mail balloting.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part III - Members of a Credit Union › Section 6-318 - Voting by Mail Ballots

(a)    The provisions of this section do not apply to:
(1)    An action authorized under § 6-329 or § 6-321 of this subtitle;
(2)    A voluntary dissolution under § 6-804 of this title; or
(3)    An authorization of compensation under § 6-331 of this subtitle.
(b)    The board of a credit union:
(1)    May authorize by resolution any question, proposal, or other matter requiring membership approval to be voted on by mail ballot; and
(2)    Shall establish a sequence of dates by which the voting procedures are initiated and completed.
(c)    The secretary of the credit union shall mail to each member in good standing who is eligible to vote:
(1)    A printed ballot;
(2)    An explanation of the question, proposal, or other matter to be voted on; and
(3)    A postage pre-paid and pre-addressed return envelope.
(d)    Unless otherwise provided in this title, the printed ballot shall be mailed to each member in good standing who is eligible to vote, not more than 30 days nor less than 7 days before the date set by the board for the filing of the mail ballot.
(e)    (1)    The question, proposal, or other matter is adopted only if approved by a majority of the ballots timely received from the members eligible to vote and in good standing and voting.
(2)    The credit union shall report the results of the mail ballot to the members.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part III - Members of a Credit Union › Section 6-319 - Expulsion and Withdrawal of Members

(a)    Subject to the applicable provisions of the bylaws, the board may expel any member of the credit union who:
(1)    Defaults on the payment of any monetary obligation to the credit union;
(2)    Is convicted of a criminal offense involving dishonesty or breach of trust;
(3)    Neglects or refuses to comply with the provisions of this title or of the bylaws of the credit union;
(4)    Habitually neglects to pay debts or becomes insolvent or bankrupt; or
(5)    Subject to the provisions of subsection (b) of this section, violates a written expulsion policy adopted by the board.
(b)    (1)    The board shall post conspicuously at each office of the credit union a notice of any expulsion policy adopted by the board.
(2)    A person expelled by the board may request a reconsideration of the expulsion.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part III - Members of a Credit Union › Section 6-320 - Amendment of Bylaws or Articles of Incorporation -- in General

(a)    (1)    The board may amend the articles of incorporation only if the members approve the amendment.
(2)    (i)    Except as provided in subparagraph (ii) of this paragraph, the board may amend the bylaws without approval of the members.
(ii)    The board may amend the bylaws only with the approval of the members for any amendment that addresses one of the following subjects:
1.    The manner or method by which a meeting of the members can be convened;
2.    Quorum requirements for a meeting of the members;
3.    The voting rights of members;
4.    Except as provided in § 6-303(b) of this subtitle, any change in the field of membership;
5.    Requirements for the number, classifications, qualifications, and term of office for directors;
6.    Procedures for removing directors;
7.    Procedures for filling vacancies on the board; and
8.    Any other issue as determined by the Commissioner.
(b)    At any meeting of the members, the members may amend the articles of incorporation or, may approve an amendment to the bylaws as provided in subsection (a)(2)(ii) of this section, if:
(1)    The notice of the meeting specifies the amendment to be considered; and
(2)    Two-thirds of the members present vote for the amendment.
(c)    (1)    An amendment to the articles of incorporation does not become effective until:
(i)    The amendment is approved by the Commissioner in writing no later than 60 days after the date of submission of the proposed amendment, unless the Commissioner and the credit union agree to a longer period of time; and
(ii)    A copy of the amendment certified by the Commissioner is filed with the State Department of Assessments and Taxation.
(2)    Whether approved only by the board or by the members as required under subsection (a)(2)(ii) of this section, an amendment to the bylaws does not become effective until the amendment is approved by the Commissioner in writing no later than 60 days after the date of submission of the proposed amendment, unless the Commissioner and the credit union agree to a longer period of time.
(d)    The action of the Commissioner on the proposed amendment to the articles of incorporation or the bylaws under subsection (c)(1)(i) or (2) of this section shall be based on a finding as to whether or not the proposed amendment:
(1)    Is in the best interest of the membership;
(2)    Provides means for better service to the membership;
(3)    Is in accord with sound credit union practices; and
(4)    Exposes the members’ funds to unnecessary risk.
(e)    The board shall report an amendment to the members of the credit union no later than the next meeting of the members after the Commissioner approves the amendment.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part III - Members of a Credit Union › Section 6-321 - Amendment of Bylaws or Articles of Incorporation -- Mail Ballot

(a)    The board:
(1)    By resolution may authorize an amendment to the bylaws or articles of incorporation to be voted on by mail ballot; and
(2)    Shall establish a sequence of dates by which the voting procedures are initiated and completed.
(b)    The secretary of the credit union shall mail to each member in good standing:
(1)    A printed ballot;
(2)    A copy of any old bylaw or article of incorporation affected by the proposed amendment; and
(3)    A copy of the proposed bylaw or article of incorporation.
(c)    (1)    The amendment is adopted only if approved by two-thirds of the mail ballots timely received from the members in good standing and voting.
(2)    The credit union shall report the results of the mail ballot to the credit union members.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-325 - Directors -- Number, Qualifications, Tenure, and Oath

(a)    Each credit union shall have at least five directors.
(b)    Each director:
(1)    Shall be a member of the credit union;
(2)    Shall be bonded;
(3)    May not have:
(i)    Defaulted on the payment of any monetary obligation to the credit union;
(ii)    Been convicted of any criminal offense involving dishonesty or breach of trust;
(iii)    Habitually neglected to pay debts;
(iv)    Become insolvent or bankrupt; or
(v)    Been removed by any state or federal regulatory agency from office as an officer, official, or employee of a financial institution; and
(4)    Shall comply with any other qualifications set forth in the credit union bylaws.
(c)    A director holds office for the term that the bylaws provide, which may not exceed 3 years, and until a successor is elected and qualifies.
(d)    Each director shall take an oath that the director:
(1)    Will diligently and honestly perform the duties as director in administering the credit union’s affairs;
(2)    Will remain responsible for the performance of the duties of the director even if the director delegates the performance of the duties; and
(3)    Will not knowingly or willfully permit the violation of an applicable law or regulation.
(e)    The chairman and, if any, vice chairman of the board shall be elected by and from the directors.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-326 - Directors -- Vacancy or Removal; Filling Vacancy

(a)    The office of a director becomes vacant if the director:
(1)    Dies;
(2)    Resigns; or
(3)    Is removed.
(b)    A director may be removed from office:
(1)    By the board, in accordance with the bylaws, if the director:
(i)    Does not possess or maintain the qualifications required to serve on the board; or
(ii)    Is absent from three consecutive regular meetings of the board unless excused; or
(2)    By the members.
(c)    (1)    Unless the bylaws provide otherwise, the remaining directors by majority vote shall fill a vacancy.
(2)    A director elected by the board to fill a vacancy holds office as the bylaws provide.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-327 - Director Emeritus

(a)    If the bylaws provide, a director emeritus may advise and consult with the board and aid the board in carrying out the board’s duties and responsibilities.
(b)    The bylaws shall provide for:
(1)    The number of directors emeriti; and
(2)    The qualifications for a director emeritus.
(c)    A director emeritus:
(1)    Shall be a member of the credit union; and
(2)    May not be an officer or an official.
(d)    A director emeritus may not:
(1)    Participate in any board or committee deliberations;
(2)    Make motions; or
(3)    Vote on any matter before the board.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-330 - Officers

(a)    Within 15 days after the annual meeting of the members and after the directors-elect have qualified, the board shall meet and elect the officers of the credit union.
(b)    Unless the bylaws provide otherwise:
(1)    Each officer serves for a term of 1 year and until a successor is elected and qualifies; and
(2)    The president shall be the chief executive officer who shall be responsible for the day to day operations of the credit union.
(c)    Subject to the provisions of an enforceable employment contract, if any, the board may remove an officer at any time.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-331 - Compensation

(a)    In this section, “compensation” means anything of value given to an official that is:
(1)    In exchange for services performed as an official; and
(2)    Reportable as income to the Internal Revenue Service or the Comptroller of the State.
(b)    Each official is entitled to the compensation that:
(1)    Subject to the provisions of subsection (c) of this section, the members authorize; and
(2)    Except as provided in subsection (d)(2) of this section, is approved by the Commissioner.
(c)    (1)    All compensation to be paid under subsection (b) of this section shall be authorized by a vote of the members at the annual meeting of the membership in accordance with § 6–317 of this subtitle.
(2)    Written disclosure of the proposed compensation and each official’s expenses shall be made to all members in good standing not less than 30 days and not more than 90 days before the annual meeting of members.
(3)    The written disclosure required under paragraph (2) of this subsection shall contain at least the following information:
(i)    The proposed dollar amount of compensation that will be paid to each official on a per meeting or other applicable basis;
(ii)    The aggregate dollar amount of compensation paid to all officials for the 12 months immediately preceding the date of the notice of the annual meeting of members;
(iii)    1.    A reasonable estimate of the aggregate dollar amount of compensation to be paid to all officials for the following 12–month period assuming:
A.    That the proposed compensation is approved; and
B.    The same number of meetings as were held during the 12 months immediately preceding the date of the notice of the annual meeting of members; or
2.    A statement that the compensation to be paid to all officials will remain the same as it was during the 12 months immediately preceding the date of the notice of the annual meeting of members; and
(iv)    The aggregate dollar amount of all officials’ expenses, excluding compensation, for the 12 months immediately preceding the date of the notice of the annual meeting of members.
(4)    (i)    The written disclosure shall be conspicuously set apart from other information provided to the members.
(ii)    The written disclosure may be included in:
1.    The notice of the annual meeting of the members;
2.    A separate mailing;
3.    A periodic statement of account; or
4.    A periodic publication of the credit union.
(d)    (1)    All requests for the Commissioner’s approval under subsection (b) of this section shall:
(i)    Be made in writing; and
(ii)    Contain a certification by the president of the credit union that the compensation has been authorized by the membership in accordance with subsection (c) of this section.
(2)    The Commissioner’s approval is not required if the credit union:
(i)    Was rated “1” or “2” as of the last examination conducted by the Commissioner; and
(ii)    Has a positive net income as of the end of the previous calendar year.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-332 - Suspension of Directors, Officers, and Credit Committee Members

(a)    A board may call a special meeting of the members to act on a report or recommendation of the supervisory committee that concerns the suspension from office of a member of the credit committee, a director, or an officer.
(b)    The notice of the special meeting shall be given within 7 days after the board receives the report or recommendation.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part IV - Officials and Officers › Section 6-333 - Education of Officials

(a)    The board shall prepare a plan for educating each official as to the duties and responsibilities that accompany the official’s position.
(b)    The education plan may include requiring an official to:
(1)    Read materials;
(2)    Attend seminars, conferences, or workshops; or
(3)    Review films or tapes.
(c)    The preparation of and compliance with an education plan developed under this section may not be construed to limit the civil or criminal liability of an official arising from an act or omission by the official in the performance of any duty or responsibility of the official.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 4 - Examinations and Reports › Section 6-401 - Supervisory Committee -- in General

(a)    Each credit union shall have a supervisory committee.
(b)    The board shall appoint the members of the supervisory committee at:
(1)    The first meeting of the board following the annual meeting of the members; and
(2)    Any time there is a vacancy.
(c)    (1)    Subject to the provisions of paragraph (2) of this subsection, the board shall determine the number of members on the supervisory committee.
(2)    The supervisory committee shall have at least three and not more than seven members.
(d)    (1)    Each member of the supervisory committee shall be appointed from among the members of the credit union.
(2)    Not more than one member of the supervisory committee may be a director.
(3)    An officer of the credit union, a member of the credit committee, or an employee of the credit union may not be a member of the supervisory committee.
(4)    At least one member of the supervisory committee shall have experience in:
(i)    Accounting;
(ii)    Auditing; or
(iii)    General business.
(5)    Each member of the supervisory committee:
(i)    Shall be bonded;
(ii)    May not have been convicted of any criminal offense involving dishonesty or breach of trust;
(iii)    May not have habitually neglected to pay any debts;
(iv)    May not become insolvent or bankrupt while serving on the supervisory committee; and
(v)    May not have been removed by the Commissioner or any state or federal regulatory agency as an officer, official, or employee of a financial institution.
(e)    The members of the supervisory committee shall elect the chairman of the supervisory committee:
(1)    At the beginning of each term of appointment to the committee; and
(2)    At any time there is a vacancy and the board is notified.
(f)    A member of the supervisory committee serves for 1 year and until a successor is appointed and qualifies.
(g)    Each member of the supervisory committee shall take an oath to perform faithfully the duties of the office.
(h)    (1)    The board shall appropriate funds:
(i)    For an audit conducted by an outside auditor; and
(ii)    If required, for an internal auditing function.
(2)    The supervisory committee has the sole authority to engage or terminate outside and internal auditors.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 4 - Examinations and Reports › Section 6-403 - Examinations of Credit Unions

(a)    In this section, “examiner” means:
(1)    The Commissioner; and
(2)    An individual whom the Commissioner designates as examiner.
(b)    An examiner shall visit each credit union and examine its business:
(1)    At least once during each calendar year, unless the Commissioner determines that, during a calendar year, an examination is unnecessary, in which event an examination shall occur no less frequently than once every 18 months;
(2)    When requested by the board or supervisory committee of the credit union; and
(3)    At any other time that the Commissioner considers necessary.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 4 - Examinations and Reports › Section 6-404 - Reports to Commissioner

(a)    On or before March 31 of each year, each credit union shall report to the Commissioner on the business of the credit union during the preceding calendar year.
(b)    The Commissioner may require any other reports from a credit union that the Commissioner considers necessary.
(c)    Each report made under this section shall be:
(1)    On the form that the Commissioner provides; and
(2)    Signed and acknowledged by:
(i)    A majority of the members of the supervisory committee; and
(ii)    The president, vice-president, secretary, or treasurer of the credit union.
(d)    If a credit union fails to make any report as required by this title, the credit union shall pay to the Commissioner $50 for each day that the report is overdue.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 4 - Examinations and Reports › Section 6-405 - Commissioner May Require Independent Audit

(a)    If the Commissioner finds that the supervisory committee of a credit union is not performing its duties properly, the Commissioner may require the credit union to have a certified public accountant audit the credit union for any period of time that the Commissioner considers necessary.
(b)    The audit required under subsection (a) of this section shall be made at the expense of the credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 4 - Examinations and Reports › Section 6-406 - Unsafe or Unauthorized Practices -- Action by Board and Members

(a)    The board may call a meeting of the members of the credit union to act on any practice of the credit union that the supervisory committee considers unsafe or unauthorized.
(b)    The board shall give the Commissioner advance notice of a meeting of the members that is called under subsection (a) of this section.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 5 - Deposits and Dividends › Section 6-501 - Interest Bearing or Share Accounts

As to each interest bearing or share account of each member or depositor in a credit union, the credit union shall generally make available to any member or depositor with an existing account, in addition to actually giving to the member or depositor, on the opening of the interest bearing or share account and, later, on demand of the member or depositor the following written notice:
“Under Maryland law, all funds remaining in this interest bearing or share account become the property of this State after the account has been inactive for 3 years and notice is sent to the member or depositor at that member’s or depositor’s last known address. This account will be considered inactive if the member or depositor has not: (1) increased or decreased the amount in the account; (2) presented the passbook or other similar evidence of the account for the crediting of interest or dividends; (3) written to this credit union about the account; (4) engaged in any credit, share, or other deposit transaction with the credit union; or (5) otherwise indicated an interest in the account as evidenced by a memorandum on file with this credit union.”
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 5 - Deposits and Dividends › Section 6-502 - Dividends

(a)    (1)    Except as otherwise provided in this section, the board may declare and pay dividends from its available net earnings or undivided earnings at the close of any accounting period after providing for accrued expenses and interest.
(2)    Dividends paid or accrued are to be treated as an expense.
(b)    The board shall set the dividend rate and any terms and conditions regarding the dividend.
(c)    A credit union may not declare a dividend:
(1)    Unless the required amount of earnings has been credited to the reserve fund of the credit union; or
(2)    If the known losses at the close of a fiscal year would exceed the sum of the balances of the reserve fund, surplus, and undivided earnings after payment of the dividend.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 5 - Deposits and Dividends › Section 6-503 - Month and Year Account Opened to Appear on Share Drafts or Checks; Exceptions

(a)    Any share drafts or checks provided directly or indirectly by a credit union for use in connection with a personal account shall have the numerical month and year in which the account was opened printed on the face of the drafts or checks, except as provided in subsection (b) of this section.
(b)    The provisions of subsection (a) of this section shall not apply under the following conditions:
(1)    If an individual personal account is closed at a particular credit union and a joint personal account is opened at the same credit union that includes one of the customers who previously had the individual personal account, then the numerical month and year printed on the face of the share drafts or checks shall be the numerical month and year in which the individual personal account was established.
(2)    If a joint personal account is closed at a particular credit union and an individual personal account is opened at the same credit union by one of the customers who previously was included under the joint account, then the numerical month and year printed on the face of the share drafts or checks shall be the numerical month and year in which the joint account was established.
(3)    If a customer with an individual personal account or with a joint personal account opens an additional account at the same credit union, then the numerical month and year printed on the face of the share drafts or checks shall be the numerical month and year in which the initial account was established.
(4)    In the case of a personal account that is closed and a new personal account opened simultaneously on the advice of the credit union, the share drafts or checks for the new account shall have the numerical month and year in which the closed account was originally opened printed on the face of the share drafts or checks.
(5)    If the closed account was opened prior to July 1, 1987, a date is not required to be printed on the share drafts or checks.
(c)    A share draft or check provided on the opening of a personal account for use by the customer until printed share drafts or checks have been prepared is not required to have the numerical month and year in which the account was opened printed on the face of the share draft or check.
(d)    (1)    The credit union and the share draft or check printer may not be held liable for unintentional errors in the month and year printed on the face of the share draft or check.
(2)    The customer may not be charged for the reprinting of the share drafts or checks when the share drafts or checks are reprinted due to error in the month and year printed on the face of the share draft or check.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-602 - Credit Committee -- in General

(a)    If the bylaws so provide, a credit union may have a credit committee.
(b)    The board shall appoint the members of the credit committee.
(c)    (1)    Subject to the provisions of paragraph (2) of this subsection, the board shall determine the number of members on the credit committee.
(2)    The credit committee shall have at least three and not more than seven members.
(d)    (1)    Each member of the credit committee shall be appointed from among the members of the credit union.
(2)    Not more than one member of the credit committee may be a director.
(3)    The treasurer of the credit union may not be a member of the credit committee.
(e)    (1)    At least one member of the credit committee shall have a minimum of 3 years experience in lending, credit, or general business.
(2)    Each member of the credit committee:
(i)    Shall be a member of the credit union for the period of time required under the bylaws;
(ii)    Shall be bonded;
(iii)    May not have defaulted on the payment of any monetary obligation to the credit union;
(iv)    May not have been convicted of any criminal offense involving dishonesty or breach of trust;
(v)    May not have habitually neglected to pay any debts;
(vi)    May not have been insolvent or bankrupt within 5 years of becoming a member and may not become insolvent or bankrupt while serving as a member; and
(vii)    May not have been removed by the Commissioner or any state or federal regulatory agency as an officer, official, or employee of a financial institution.
(f)    A member of the credit committee serves for 1 year and until a successor is appointed and qualifies.
(g)    The credit committee shall fill any vacancy on the committee by appointing an individual to serve until the next regular meeting of the board.
(h)    The members of the credit committee shall elect the chairman of the credit committee at the beginning of each term and at any other time that a vacancy may occur in the position of the chairman.
(i)    The board shall remove any member of the credit committee who fails:
(1)    To attend three consecutive regular meetings of the credit committee without good cause; or
(2)    To perform any of the duties of the office.
(j)    Each member of the credit committee shall take an oath to perform faithfully the duties of the office.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-603 - Credit Committee -- Approval of Loans; Loan Officers; Meetings

(a)    (1)    Except as provided in subsection (b) of this section, and in § 6-328 (7) and (8) of this title, a loan may not be made to any member of a credit union unless it is approved unanimously by those members of the credit committee who are present at a meeting that is attended by a majority of the members of the credit committee.
(2)    If the bylaws of the credit union so provide, an applicant for a loan that is not approved by the credit committee may appeal to the board of directors.
(b)    (1)    (i)    The credit committee or the president may appoint loan officers.
(ii)    The appointment of loan officers by the president shall be subject to confirmation by the credit committee.
(iii)    The credit committee shall supervise loan officers and delegate to them the power to approve or disapprove loans in accordance with written instructions or policies adopted by the board.
(2)    Not more than one loan officer may be a member of the credit committee.
(3)    A loan made by a loan officer in accordance with the written instructions or policies of the board does not have to be approved by the credit committee.
(4)    (i)    Each loan officer shall give the credit committee the record of each loan that the officer approves or disapproves within 7 days after a loan application is made.
(ii)    The credit committee shall act on each loan application where the decision of the loan officer has been appealed by the credit union member.
(5)    A loan officer may not disburse credit union funds for any loan that the loan officer approved.
(c)    The credit committee shall meet as often as necessary.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-605 - Required Security

(a)    A credit union may make a loan, including a business loan, to a member with or without security in accordance with the written lending policies established by the board that cover all secured and unsecured loans.
(b)    A credit union may accept as security for a loan:
(1)    An endorsed note;
(2)    A note secured by a lien on real, leasehold, or personal property;
(3)    An assignment of shares or deposits in the credit union; or
(4)    Any other kind of security that is approved by the Commissioner.
(c)    The Commissioner may review the lending policies of the credit union and order changes.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-606 - Mortgage Loans

(a)    A credit union may make a loan to a member that is secured by real or leasehold property in accordance with written real estate lending policies established by the board as provided in this section.
(b)    A loan under this section shall be:
(1)    Secured by a deed of trust or mortgage on real or leasehold property; and
(2)    Amortized over a period of 30 years or less.
(c)    The Commissioner may review the lending policies of the credit union and order changes.
(d)    (1)    This subsection does not apply to an extension of credit or loan made by a credit union on or after October 1, 1994.
(2)    A loan under this section that is secured by a first mortgage may be made at any rate of interest that does not exceed the rate authorized by Title 12, Subtitle 1 of the Commercial Law Article for mortgage loans.
(3)    A loan under this section that is secured by a second mortgage may be made at any rate of interest that does not exceed the rate authorized by Title 12, Subtitle 4 of the Commercial Law Article.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-607 - Participation With Other Institutions

(a)    Subject to the provisions of subsection (b) of this section, a credit union may participate with a depository financial institution or a credit union service organization for purposes of making a loan to a credit union member in accordance with the lending policies of the board.
(b)    A credit union may participate in a loan under subsection (a) of this section provided that the credit union that originates the loan retains an interest of at least 10% of the face amount of the loan.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-609 - Purchase of Certain Obligations and Loans Authorized

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Eligible obligation” means a loan or a group of loans made to a member of a credit union by a lender other than the credit union to which the member belongs.
(3)    “Student loan” means a loan that is:
(i)    Granted to finance the borrower’s attendance at an institution of higher education or at a vocational school; and
(ii)    Secured by, and on which payment of the outstanding principal and interest has been deferred in accordance with, the insurance or guarantee of the federal government, a state government, or a unit of the federal government or of a state government.
(b)    (1)    Subject to the provisions of paragraph (2) of this subsection, a credit union may purchase, in whole or in part, in accordance with the board’s purchase policies:
(i)    Eligible obligations of its members;
(ii)    Eligible obligations of the individual members of a liquidating credit union, from the liquidating credit union;
(iii)    Student loans if the credit union is granting student loans on an ongoing basis and if the purchase will facilitate the credit union’s packaging of a pool of the loans to be sold or pledged on the secondary market; and
(iv)    Real estate loans if the credit union is granting real estate loans under this subtitle on an ongoing basis and if the purchase will facilitate the credit union’s packaging of a pool of the loans to be sold or pledged on the secondary mortgage market.
(2)    A credit union may make a purchase under paragraph (1) of this subsection if:
(i)    The board or investment committee approves the purchase;
(ii)    A written agreement and a schedule of the eligible obligations covered by the agreement are retained by the credit union for inspection;
(iii)    The aggregate of the unpaid balance of eligible obligations purchased under paragraph (1)(i) and (ii) of this subsection does not exceed 5% of the total assets of the credit union; and
(iv)    For purchases of real estate loans under paragraph (1)(iv) of this subsection, the pool of loans to be sold or pledged on the secondary mortgage market:
1.    Includes a substantial portion of the credit union’s members’ real estate loans, but no less than 20% of the aggregate principal amount of the loans purchased; and
2.    Is sold promptly, but no later than 6 months after the purchase.
(c)    A credit union may sell or pledge, in whole or in part, the eligible obligations or loans purchased under subsection (b)(1) of this section if:
(1)    The board or investment committee approves the sale or pledge; and
(2)    The written agreement covering the sale or pledge and a schedule of the eligible obligations or loans covered by the agreement are retained by the credit union for inspection.
(d)    A credit union may agree to service any eligible obligation the credit union purchases or sells in whole or in part.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 6 - Loans › Section 6-610 - Loans to Officials of Credit Union

(a)    (1)    A credit union may make a loan to an official of the credit union if the official takes no part in consideration of the loan application.
(2)    A loan authorized under paragraph (1) of this subsection requires approval of the board if:
(i)    The official is the debtor in the loan or is the guarantor, endorser, or cosigner of the loan; and
(ii)    The loan, standing alone or when added to the aggregate of all outstanding loans for which the official is the debtor or acts as guarantor, endorser, or cosigner, or both, exceeds $25,000 plus pledged shares.
(b)    The rates, terms, and conditions on any loan from a credit union to, or guaranteed, endorsed, or cosigned by, an official or officer of the credit union may not be more favorable than the rates, terms, and conditions for a comparable loan to another member of the credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-701 - Required Insurance

(a)    Each credit union incorporated under the laws of this State shall:
(1)    Participate in and have its member accounts insured under the National Credit Union Administration Share Insurance Program; or
(2)    Participate in and have its member accounts insured by a credit union share guaranty corporation that is approved by the Commissioner to at least the same extent and amount as provided by the National Credit Union Administration Share Insurance Program.
(b)    (1)    The Commissioner may examine any credit union share guaranty corporation that insures the member accounts of a credit union that is subject to this title.
(2)    The Commissioner may charge the reasonable cost of an examination conducted under paragraph (1) of this subsection to the credit union share guaranty corporation that is examined.
(c)    A credit union share guaranty corporation, its members, and persons who have share and deposit accounts in credit unions are not subject to the provisions of the Insurance Article as a result of any of the activities of the credit union share guaranty corporation under this title.
(d)    A credit union may not voluntarily terminate its insurance with the National Credit Union Administration Share Insurance Program or a credit union share guaranty corporation without prior approval of the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-703 - Reserve Fund

(a)    In this section, “risk assets” means a credit union’s total loans outstanding to its members.
(b)    (1)    Each credit union shall have a reserve fund to meet losses on loans and to meet other contingencies that the Commissioner specifies.
(2)    The reserve fund may be distributed to the members of the credit union only on dissolution of the credit union.
(c)    (1)    After paying organization expenses, each credit union shall credit to its reserve fund all entrance fees, transfer fees, and fines.
(2)    A credit union in operation for 4 years or more and having assets of $500,000 or more shall credit to the reserve fund, at the end of each accounting period:
(i)    10 percent of its gross income until the reserve fund equals 4 percent of its risk assets; and
(ii)    Then, 5 percent of its gross income until the reserve fund equals 6 percent of its risk assets.
(3)    A credit union in operation for less than 4 years or having assets of less than $500,000 shall credit to the reserve fund, at the end of each accounting period:
(i)    10 percent of its gross income until the reserve fund equals 7.5 percent of its risk assets; and
(ii)    Then, 5 percent of its gross income until the reserve fund equals 10 percent of its risk assets.
(4)    On recommendation of the board, the amount credited to the reserve fund may be increased.
(d)    If the reserve fund falls below the amounts required by subsection (c)(2) or (3) of this section, it shall be restored by regular contributions.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-704 - Allowance for Loan and Lease Loss

(a)    A credit union shall maintain an allowance for loan and lease loss account in accordance with generally accepted accounting principles.
(b)    The balance of the allowance for loan and lease loss account shall include coverage for:
(1)    Individually classified loans; and
(2)    The historical reserve needs of the credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-705 - Permitted Deposits and Investments

(a)    The assets of a credit union that are not committed for loans may be invested in:
(1)    General obligations of or obligations guaranteed by the United States;
(2)    Deposits, loans, shares, or stock of any federal reserve bank, federal home loan bank, or any central liquidity facility established under state or federal law;
(3)    Securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the federal government or a unit of the federal government;
(4)    General obligations of a state or a federal territory or political subdivision, provided that the general obligation is rated in one of the three highest rating categories of a nationally recognized statistical rating organization as determined by the Commissioner;
(5)    Deposits or federal funds of any financial institution that has federal deposit insurance;
(6)    Shares or deposits of other credit unions;
(7)    Mutual funds that invest solely in investments permissible for direct investment by the credit union;
(8)    Repurchase transactions secured by investments permissible for direct investment by the credit union; or
(9)    Any other investment that the Commissioner approves.
(b)    (1)    Subject to the provisions of paragraph (2) of this subsection, in addition to the investments authorized under subsection (a) of this section, a credit union may request authority from the Commissioner to make other investments, including investments authorized under the federal Credit Union Act or regulations of the National Credit Union Administration, on an ongoing basis.
(2)    To obtain the Commissioner’s approval for additional investment authority under paragraph (1) of this subsection, a credit union shall submit to the Commissioner an investment policy.
(c)    The Commissioner may review the investment policies of the credit union and order changes.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-707 - Credit Union Facilities

(a)    (1)    In addition to any other investment authorized under this subtitle, a credit union may purchase, construct, or acquire and hold, either individually or jointly with another credit union, fixed assets for the purpose of providing adequate facilities for the transaction of present and future business.
(2)    A credit union may use fixed assets acquired under this section for:
(i)    The principal office functions;
(ii)    Branches; and
(iii)    Any other activities in which the credit union engages.
(3)    A credit union may rent excess space in a fixed asset acquired under this section as a source of income.
(4)    A credit union’s investment in fixed assets acquired under this section:
(i)    May exceed 4% of the total assets of the credit union only with the prior approval of the Commissioner; and
(ii)    May not exceed 6% of the total assets of the credit union.
(b)    A credit union may purchase, lease, or acquire and hold tangible personal property, either individually or jointly with another credit union, as may be necessary or incidental to the operations of the credit union.