reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-708 - Power to Borrow

(a)    (1)    Subject to the provisions of paragraph (2) of this subsection, a credit union may borrow money for the purchase of fixed assets.
(2)    The term of the loan may not exceed:
(i)    15 years for borrowings secured by real or leasehold property; and
(ii)    5 years for borrowings secured by other fixed assets.
(b)    A credit union may borrow money for a purpose other than the purchase of fixed assets as long as the total borrowing does not exceed the greater of:
(1)    Two times the net worth of the borrowing credit union; or
(2)    10% of the total assets of the borrowing credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-711 - Hours of Operation

(a)    A credit union shall post its hours of operation prominently in its office.
(b)    Each credit union shall be open for business during its posted hours, except that a credit union may close:
(1)    On any State holiday; and
(2)    At any other time if:
(i)    Notice of the closing is posted prominently in its office 3 business days in advance;
(ii)    Specifically authorized to close by the Commissioner; or
(iii)    An emergency exists that affects the credit union and it is not practical to obtain authorization from the Commissioner before closing the affected credit union.
(c)    If a credit union closes under the provisions of subsection (b)(2)(iii) of this section, the chairman of the board or the president of the affected credit union shall notify the Commissioner of the reason for the closing of the credit union as soon as possible but no later than 24 hours after the closing of the credit union.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-712 - Credit Unions With Assets of $300,000 or Greater; Annual Assessment

(a)    This section applies only to a credit union with assets of $300,000 or greater.
(b)    (1)    The Commissioner shall impose an annual assessment on each credit union as provided in this subsection to cover the expense of regulating credit unions.
(2)    The Commissioner shall assess each credit union the sum of:
(i)    $1,000; and
(ii)    8 cents for each $1,000 of the assets of the credit union over $1,000,000.
(3)    The assessment shall be based on assets stated in the credit union’s most recent financial report.
(c)    A credit union shall pay the assessment imposed under this section to the Commissioner on or before the March 1 after the assessment is imposed.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-713 - Member Insurance -- Notice to Commissioner

If a credit union files an application with the Maryland Insurance Commissioner to purchase or make available, as an agent or otherwise, insurance for its members either on an individual or group basis, the credit union shall notify the Commissioner, within 10 days after filing the application, that the credit union has filed the application.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-714 - Marketing Arrangements

(a)    As approved by the Commissioner, a credit union may enter into marketing arrangements with a person to facilitate the credit union’s members’ voluntary purchase of goods or other services from third parties, consistent with the purposes of the credit union.
(b)    A credit union may be compensated for the services provided under subsection (a) of this section.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 7 - Miscellaneous Regulations › Section 6-715 - Books and Records

(a)    A credit union shall keep the books and records that the Commissioner requires to determine compliance with this title.
(b)    Unless a longer period is expressly required by State or federal law, a credit union shall retain the books and records required under subsection (a) of this section for a period of at least 5 years.
(c)    A credit union may retain the books and records required under subsection (a) of this section at any location, provided that the credit union:
(1)    Notifies the Commissioner in writing of the location of the books and records; and
(2)    Makes the books and records available at the credit union’s principal place of business, as agreed by the Commissioner and the credit union, within 7 days of a written request for examination by the Commissioner.
(d)    A credit union shall retain the books and records required under subsection (a) of this section in one of the following ways:
(1)    Original form;
(2)    An electronic equivalent approved by the Commissioner; or
(3)    A microphotographic copy approved by the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-801 - Conversion of State Credit Union Into Federal Credit Union

(a)    Any State credit union may convert into a federal credit union as provided by federal law and as provided in this section.
(b)    A majority of the board of a credit union proposing to convert shall:
(1)    Adopt a resolution that declares that the conversion is advisable;
(2)    Set a date for a vote on the proposed conversion by the members of the credit union at an annual or special meeting of the members or by mail ballot to be filed on or before that date;
(3)    Comply with federal law regarding conversion; and
(4)    File the required conversion application with the Commissioner.
(c)    The Commissioner, at the request of the board, may:
(1)    Waive the vote of the members; and
(2)    Substitute any reasonable method of determining the approval by the members.
(d)    Unless the Commissioner takes action under subsection (c) of this section, written notice of the proposed conversion and of the date set for the vote shall be delivered in person to each member or mailed to each member at the member’s address as recorded by the credit union, not more than 30 days nor less than 7 days before the date set for the vote.
(e)    (1)    Unless the Commissioner takes action under subsection (c) of this section, the proposed conversion shall be approved by the affirmative vote of a majority of the members who vote on the proposal.
(2)    Within 10 days after the vote, a statement of the results of the vote shall be filed with the Commissioner. The statement shall be verified by the chairman or vice chairman of the board and by the secretary of the credit union.
(f)    (1)    Within 90 days after a proposed conversion is approved by the members, the credit union shall take any action necessary under federal law to make it a federal credit union.
(2)    Within 10 days after the credit union receives a federal credit union charter, a copy of that charter shall be filed with the Commissioner and, when the copy is filed, the credit union ceases to be a State credit union.
(g)    When the conversion from a State credit union to a federal credit union is complete:
(1)    The converted credit union is no longer subject to the provisions of this title; and
(2)    The successor federal credit union owns all the assets and is responsible for all the obligations of the former State credit union as though the conversion had not taken place.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-802 - Conversion of Foreign Credit Union Into State Credit Union

(a)    Any credit union organized under the laws of any other state or of the United States may convert to a State credit union as provided in this section.
(b)    A credit union proposing to convert shall meet:
(1)    All of the requirements of this title for the incorporation of a credit union in this State; and
(2)    All of the requirements of the Commissioner, including any specific conditions that a credit union must meet in order to convert.
(c)    A majority of the board of a credit union proposing to convert shall:
(1)    Adopt a resolution that declares that the conversion is advisable; and
(2)    Set a date for a vote on the proposed conversion by the members at an annual or special meeting of the members or by mail ballot to be filed on or before that date.
(d)    The Commissioner, at the request of the board, may:
(1)    Waive the vote of the members; and
(2)    Substitute any reasonable method of determining the approval by the members.
(e)    Unless the Commissioner takes action under subsection (d) of this section, written notice of the proposed conversion and of the date set for the vote shall be delivered in person to each member or mailed to each member at the member’s address as recorded by the credit union, not more than 30 days nor less than 7 days before the date set for the vote.
(f)    (1)    Unless the Commissioner takes action under subsection (d) of this section, the proposed conversion shall be approved by the affirmative vote of a majority of the members who vote on the proposal.
(2)    Within 10 days after the vote, a statement of the results of the vote shall be filed with the Commissioner. The statement shall be verified by the chairman or vice chairman of the board and the secretary of the credit union.
(g)    (1)    A credit union may convert to a State credit union if:
(i)    The converted credit union:
1.    Meets the common bond requirements of the proposed field of membership type; and
2.    Files with the Commissioner an application and any other documents that the Commissioner deems necessary to make a determination; and
(ii)    The Commissioner determines that the conversion:
1.    Is in the best interest of the existing and proposed membership;
2.    Will likely result in better service to the existing membership;
3.    Is in accordance with sound credit union practices; and
4.    Does not expose the funds of the existing members to unnecessary risk.
(2)    Unless the Commissioner notifies the credit union that a different time period is necessary, within 120 days after the application is filed, the Commissioner shall notify the credit union of the determination on the application.
(h)    When the conversion is complete, the successor credit union owns all of the assets and is responsible for all the obligations of the credit union as though the conversion had not taken place.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-804 - Voluntary Dissolution

(a)    Any credit union may dissolve voluntarily, if the board, the members of the credit union, and the Commissioner approve the dissolution as provided in this section.
(b)    A majority of the board of a credit union proposing to dissolve shall adopt a resolution that:
(1)    Recommends that the credit union be dissolved voluntarily; and
(2)    Directs that a proposal of dissolution be submitted to the members.
(c)    (1)    A proposed dissolution shall be approved at an annual or special meeting of the members or by mail ballot by the affirmative vote of two-thirds of the entire membership of the credit union.
(2)    The Commissioner may substitute any reasonable method of determining the vote of the members.
(d)    After a proposed dissolution is approved by the members, the credit union shall file with the Commissioner:
(1)    A copy of the resolution of the board recommending voluntary dissolution, attested to by:
(i)    The chairman or vice chairman of the board; and
(ii)    The secretary or treasurer of the credit union;
(2)    A verified statement of the names and addresses of the officers and directors of the credit union; and
(3)    The vote by which the voluntary dissolution was approved by the members.
(e)    (1)    If the Commissioner finds that the credit union is solvent, the Commissioner shall issue to the credit union duplicate certificates stating that the credit union appears to have complied with this section.
(2)    The credit union shall file one of the certificates with the State Department of Assessments and Taxation.
(f)    When the certificate is filed with the State Department of Assessments and Taxation, the credit union is dissolved.
(g)    (1)    On dissolution, a credit union may operate only to wind up its business and affairs.
(2)    Under the direction of the Commissioner, the liquidating agent of the dissolved credit union, appointed by the board, shall:
(i)    Discharge its debts and obligations;
(ii)    Collect and distribute its assets; and
(iii)    Do anything else necessary to wind up its business and affairs.
(3)    For 3 years after the dissolution becomes effective, the credit union, acting by its board and liquidating agent:
(i)    Shall continue in existence for the purpose of winding up its business and affairs; and
(ii)    May sue and be sued in its name.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-805 - Voluntary Receivership

(a)    Any credit union voluntarily may place its business and assets in the hands of the Commissioner for liquidation as provided in this section.
(b)    A majority of the board proposing a voluntary receivership shall:
(1)    Adopt a resolution that declares that the voluntary receivership is advisable; and
(2)    Set a date for a vote on the proposed voluntary receivership by the members of the credit union at an annual or special meeting of the members or by mail ballot to be filed on or before that date.
(c)    The Commissioner, at the request of the board, may:
(1)    Waive the vote of the members; and
(2)    Substitute any reasonable method of determining the approval by the members.
(d)    Unless the Commissioner takes action under subsection (c) of this section, the proposed voluntary receivership shall be approved by the affirmative vote of a majority of the members of the credit union who vote on the proposal.
(e)    After the action is approved by the members, the proper officers of the credit union shall certify the action of the members to the Commissioner, and the Commissioner shall post a notice at each office of the credit union that states: “This credit union is in the hands of the Maryland Commissioner of Financial Regulation for liquidation.”
(f)    If a credit union is placed in the hands of the Commissioner under this section, the Commissioner shall place the credit union in receivership for liquidation in the same manner as provided for a banking institution under Title 5, Subtitle 6 of this article.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-806 - Assumption of Liabilities of Another Credit Union

With the approval of the Commissioner, a credit union may purchase the assets or assume the liabilities of another credit union whether or not the credit unions have the same field of membership type, if:
(1)    The other credit union is insolvent or likely to become insolvent;
(2)    The purchase or assumption is in the best interest of the membership of the other credit union; and
(3)    The purchase or assumption will not adversely affect the financial condition of the credit union that makes the purchase or assumption.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-807 - State Branches

(a)    A credit union may establish a branch in the State in accordance with the provisions of this section.
(b)    (1)    A credit union that proposes to establish a branch in the State shall:
(i)    File with the Commissioner, at least 30 days before the intended opening date, a notice of intention to open a branch;
(ii)    Submit to the Commissioner any information the Commissioner requires in order to evaluate the proposed branch; and
(iii)    Pay to the Commissioner a branch fee of $100.
(2)    The branch fee may not apply to a branch that is acquired by a credit union through a merger or consolidation with, or transfer to the credit union of all or substantially all of the assets of, a credit union.
(c)    In deciding whether to approve the establishment of a branch, the Commissioner shall consider whether:
(1)    The establishment of the branch will promote the convenience of the members of the credit union;
(2)    The applicant has sufficient net worth to support the branch; and
(3)    The applicant generally is operating in compliance with the provisions of this title.
(d)    (1)    The Commissioner shall decide whether to approve the establishment of a branch within 30 days of receipt of the notice specified in subsection (b)(1) of this section.
(2)    The establishment of a branch shall be deemed approved if the Commissioner takes no action on the notice within the time limit specified in this subsection.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-808 - Out-of-State Credit Union

(a)    An out-of-state credit union shall provide the Commissioner, within 15 days of opening a branch in the State, with a notice of the opening of the branch.
(b)    A credit union chartered and primarily regulated by another state that proposes to establish a branch in this State shall qualify under § 7-203 of the Corporations and Associations Article to do business in the State as a foreign corporation.
(c)    An out-of-state credit union that has a branch in this State may establish additional branches in this State:
(1)    To the same extent as a credit union; or
(2)    To the extent otherwise permitted by federal law.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 8 - Extraordinary Actions › Section 6-809 - Member Withdrawal From Account

(a)    A credit union may require not more than 60 days’ notice of a member’s intention to withdraw from a share account or deposit account.
(b)    A requirement imposed under subsection (a) of this section shall:
(1)    Apply to all members of the credit union; and
(2)    Be included in each member’s account agreement.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-901 - Unauthorized Use of Words "Credit Union" Prohibited

(a)    (1)    Except for a credit union authorized to do business in this State, a person may not:
(i)    Use or advertise any name or title that contains the words “credit union” or any derivation of that term;
(ii)    Represent itself as a credit union;
(iii)    Conduct business as a credit union; or
(iv)    Conduct business under a name or title that:
1.    Indicates or reasonably implies that the person engages in or transacts the type of business conducted by a credit union; or
2.    Is calculated to lead a person to believe that the business engaged in or transacted is the type of business conducted by a credit union.
(2)    Any person who violates any provision of this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both per occurrence.
(b)    This section does not apply to an association or league of credit unions, whether or not the association or league is incorporated.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-902 - Making, Circulating, or Sending Untrue Statements

(a)    A person may not willfully make, circulate, or send to another person any untrue statement that is derogatory to the financial condition or that affects the solvency or financial standing of any credit union doing business in the State, or counsel, aid, procure, or induce another to make, circulate, or send to another person such a statement.
(b)    A person that violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 3 years or both.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-903 - Intentionally False Statements or False Records

(a)    An officer, official, or employee of a credit union may not willfully and knowingly make or cause to be made a false statement or false entry in the records of the credit union or, with the intent to deceive a person authorized to examine the affairs of the credit union, sign or exhibit false records.
(b)    An officer, official, or employee who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-904 - Improper Loans

(a)    An officer or official who in any way knowingly permits or participates in making a loan in violation of § 6-611 of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both, per occurrence.
(b)    If a loan is made in violation of § 6-611 of this title, the credit union may recover the amount of the loan from:
(1)    Any borrower; or
(2)    Any officer or official who knowingly permitted or participated in making the loan.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-905 - Improper Loans -- Action by Commissioner

(a)    The Commissioner may order a credit union, or enter into an agreement with a credit union, to take corrective action if the Commissioner finds that the credit union:
(1)    Has failed to file a report when due;
(2)    Is insolvent;
(3)    Has violated any provision of this title; or
(4)    Is engaged in an unsafe or unauthorized practice.
(b)    (1)    Before the order becomes effective, the Commissioner shall give the credit union an opportunity for a hearing.
(2)    Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.
(c)    If the Commissioner determines that the violation or practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:
(1)    May issue a cease and desist order that is effective on service; and
(2)    Shall give the credit union an opportunity for a hearing to rescind the order.
(d)    If the credit union fails to comply with the order within 60 days after it becomes effective, the Commissioner may:
(1)    Take possession of the business and assets of the credit union and operate it until the Commissioner permits it to resume business or until the Commissioner orders its liquidation under item (3) of this subsection;
(2)    Order the credit union share guaranty corporation that insures the credit union to take possession of the business and assets of the credit union and operate it in accordance with the Commissioner’s instructions until the Commissioner permits it to resume business or until the Commissioner orders its liquidation under item (3) of this subsection; or
(3)    Place the credit union in receivership for liquidation in the same manner as provided for a banking institution under Title 5, Subtitle 6 of this article.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-906 - Cease and Desist Orders

(a)    The Commissioner shall order any credit union to cease and desist from:
(1)    An unsafe or unsound practice;
(2)    A practice that is injurious to the public interest; or
(3)    A violation of laws or rules or regulations that relate to the Commissioner’s supervision of the credit union.
(b)    To protect depositors or members, the Commissioner may include in a cease and desist order a restriction on the withdrawal of money from any credit union.
(c)    The Commissioner may include in a cease and desist order a requirement that the officers or officials act affirmatively to correct any violation or practice.
(d)    (1)    Before a cease and desist order takes effect, the Commissioner shall give the credit union an opportunity for a hearing.
(2)    Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.
(e)    If the Commissioner determines that the violation or practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:
(1)    May issue a cease and desist order that is effective on service; and
(2)    Shall give the credit union an opportunity for a hearing to rescind the order.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-906.1 - Cease and Desist Orders -- Civil Penalty

(a)    After notice and a hearing, the Commissioner may assess a civil penalty against a credit union that the Commissioner determines has:
(1)    Violated a cease and desist order issued by the Commissioner under § 6–906 of this subtitle; or
(2)    Engaged in:
(i)    An unsafe or unsound practice; or
(ii)    A practice that is injurious to the public interest.
(b)    The civil penalty may not exceed:
(1)    $1,000 per violation; and
(2)    $1,000 per violation for each day that the violation continues.
(c)    (1)    A civil penalty shall be assessed by written notice of assessment served on the person to be assessed.
(2)    The notice of assessment shall state the:
(i)    Amount of the civil penalty;
(ii)    Legal authority for the assessment; and
(iii)    Matters of fact or law constituting the grounds for the assessment.
(3)    The notice of assessment shall constitute a final order for purposes of judicial review pursuant to § 10–221 of the State Government Article.
(d)    In determining the amount of the civil penalty to be assessed, the Commissioner shall consider:
(1)    The seriousness of the violation;
(2)    The good faith of the violator;
(3)    The violator’s history of previous violations;
(4)    The deleterious effect of the violation on the public and the credit union industry;
(5)    The assets of the violator; and
(6)    Any other factors relevant to the determination of the civil penalty.
(e)    (1)    A civil penalty assessed under this section shall be due and payable within 30 days after the Commissioner issues the notice of assessment.
(2)    The Commissioner may reduce or set aside a civil penalty.
(f)    The Commissioner shall pay all civil penalties collected under this section into the General Fund of the State.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-906.2 - Closed Hearing in Extraordinary Circumstances

(a)    In this section, “extraordinary circumstances” means a situation presenting specific concerns about the prompt withdrawal of money from, or the safety and soundness of, a credit union.
(b)    In extraordinary circumstances and with the consent of the credit union, the Commissioner may close to the public a hearing concerning the assessment of a civil penalty, an order to cease and desist, or any other formal enforcement action by the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-907 - Unsafe or Unsound Practices

(a)    (1)    If the Commissioner believes that an officer or official has engaged in an unsafe or unsound practice, the Commissioner shall send a warning to the officer or official.
(2)    If the Commissioner finds that the officer or official has continued to engage in the unsafe or unsound practice, the Commissioner may report the facts to the Secretary of Labor and the Attorney General.
(3)    A copy of the report shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to each director of the credit union.
(b)    (1)    If the Commissioner finds that the unsafe or unsound practice continues after the warning and the officer, official, agent, or employee was provided an opportunity to be heard, the Commissioner may remove the officer, official, agent, or employee with the approval of the Secretary of Labor.
(2)    Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.
(c)    A copy of the removal order shall be served on the individual removed and the credit union.
(d)    If the Commissioner determines that the unsafe or unsound practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:
(1)    May issue a cease and desist order that is effective on service; and
(2)    Shall give the officer or official an opportunity for a hearing to rescind the order.
2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 9 - Prohibited Activities; Penalties › Section 6-908 - Violations

(a)    If the Commissioner believes that any officer, official, agent, or employee of a credit union has violated any provision of this title, the Commissioner may report the violation directly to the Secretary of Labor and to the Attorney General who shall take the appropriate steps to institute a prosecution for the violation.
(b)    (1)    The Commissioner shall send a written warning to an officer, official, agent, or employee of a credit union who the Commissioner believes has violated any provision of this title.
(2)    If after a warning the violation continues, the officer, official, agent, or employee may be removed as provided in § 6–907(b) of this subtitle.
(3)    Unless otherwise specified, any officer, official, agent, or employee of a credit union who violates the provisions of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years.
(c)    If the Commissioner determines that the violation under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:
(1)    May issue a cease and desist order that is effective on service; and
(2)    Shall give the officer, official, agent, or employee an opportunity for a hearing to rescind the order.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part I - Definitions › Section 7-101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Corporation” means the Credit Union Insurance Corporation.
(c)    “Credit union” means:
(1)    Any credit union that is incorporated under the laws of this State; and
(2)    Any other credit union that is authorized to do business in this State and has its principal office in this State.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-102 - Corporation Established

(a)    There is a Credit Union Insurance Corporation, established as a nonprofit, nonstock corporation, the members of which are credit unions that are accepted for membership under this part.
(b)    (1)    The Corporation is not and may not be deemed a department, unit, agency, or instrumentality of the State for any purpose.
(2)    All debts, claims, obligations, and liabilities of the Corporation, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Corporation only and not of the State, its agencies, instrumentalities, officers, or employees.
(3)    The Corporation money may not be considered part of the General Fund of the State.
(4)    The debts, claims, obligations, and liabilities of the Corporation may not be considered to be a debt of the State or a pledge of its credit.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-103 - Purposes of Corporation

The purposes of the Corporation are to:
(1)    Insure and guarantee the share and deposit accounts of member credit unions;
(2)    Improve and stimulate the ability of credit unions to provide low-cost consumer loans;
(3)    Promote the elasticity and flexibility of the resources of credit unions;
(4)    Make loans for liquidity purposes to credit unions;
(5)    Discount notes of credit unions;
(6)    Provide a State service of lending among credit unions;
(7)    Help rehabilitate and stabilize credit unions;
(8)    Help liquidate credit unions in an orderly manner when necessary;
(9)    Help strengthen and develop credit unions serving low-income individuals; and
(10)    Cooperate with and assist credit unions, organizations of credit unions, the Commissioner, the National Credit Union Administration, and others in improving the general welfare of the people through credit unions.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-105 - Insurance of Share and Deposit Accounts

(a)    The Corporation shall insure and guarantee the share and deposit accounts of each member on the same basis, and to the same extent and amount as provided by the National Credit Union Administration Share Insurance Program.
(b)    The Corporation may make contracts for reinsurance.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-106 - Membership -- Applications

(a)    (1)    Subject to the provisions of Part III of this subtitle, any credit union may apply to the Corporation to become a member of the Corporation.
(2)    The Corporation shall refer each application that it receives to the Commissioner.
(b)    (1)    On receipt of an application for membership, the Commissioner shall examine the affairs of the credit union.
(2)    If the Commissioner finds that the credit union qualifies for membership under § 7–107 of this subtitle, the Commissioner shall certify that fact to the Corporation.
(c)    The Corporation may not extend benefits to any credit union until the Corporation receives the certification of the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-107 - Membership -- Qualifications; Term; Termination; Duties

(a)    (1)    A credit union becomes a member of the Corporation when:
(i)    The financial affairs, solvency, and management of a credit union have been certified by the Commissioner as approved for insurance of its share and deposit accounts; and
(ii)    The application of the credit union is accepted by the Board of Directors of the Corporation.
(2)    The Board of Directors of the Corporation may deny the application of a credit union only for good cause shown.
(b)    Subject to the bylaws, rules, and regulations of the Corporation and except as provided in subsection (c) of this section and Part III of this subtitle, membership in the Corporation continues as long as the Corporation exists.
(c)    (1)    If the Board of Directors of the Corporation finds that unsafe or unsound practices or mismanagement of a member threatens loss to the Corporation or appears to affect adversely the solvency of the member, the Board may:
(i)    Order the member to correct the situation; or
(ii)    With the approval of the Commissioner and after giving the member notice and an opportunity for a hearing, revoke the membership of the credit union.
(2)    A credit union that is organized under federal law or the laws of any other state may withdraw from the Corporation by:
(i)    Giving written notice at least 1 year in advance; and
(ii)    Complying with the bylaws, rules, and regulations of the Corporation.
(d)    Each member of the Corporation shall make the investments and pay the assessments, premiums, and other charges required for participation in the Corporation.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-108 - Membership -- Voting by Members

(a)    In the election of directors and in voting on any other matter at a meeting of the members of the Corporation, each member has one vote, to be cast by its delegate.
(b)    A delegate may not vote on behalf of more than one member.
(c)    A majority of the votes cast is sufficient to elect directors or decide any questions voted on by the members.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-109 - Board of Directors

(a)    The powers of the Corporation shall be exercised by its Board of Directors.
(b)    The Board of Directors consists of 11 directors elected by the members of the Corporation.
(c)    Each director shall be a resident of this State.
(d)    (1)    Each director serves for a term of 4 years and until a successor is chosen and qualifies.
(2)    The terms of the directors shall be staggered as required by the terms provided for directors on July 1, 1988.
(3)    If a vacancy occurs as to an elected director, the Board of Directors shall elect a successor to fill the vacancy until the next annual meeting of the members of the Corporation. At the annual meeting, the members of the Corporation shall elect a successor to serve for the rest of the term and until a successor is elected and qualifies.
(e)    A majority of the full authorized membership of the Board of Directors is a quorum.
(f)    Each director is entitled to reasonable compensation, as set by the Board of Directors with the approval of the Commissioner.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-110 - Officers and Staff

(a)    (1)    The Board of Directors of the Corporation:
(i)    Shall elect one of its members as chairman of the Board; and
(ii)    May appoint any officers and employees that it considers advisable.
(2)    The manner of election of the chairman and appointment of officers and their terms of office shall be as the bylaws provide.
(b)    In accordance with the bylaws of the Corporation, the Board of Directors shall set the amount of the fidelity bonds of the officers and employees of the Corporation.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-111 - Bylaws, Rules, and Regulations

(a)    The Board of Directors of the Corporation shall adopt bylaws for the Corporation and rules and regulations to carry out the provisions of this title.
(b)    (1)    A bylaw, rule, or regulation becomes effective only after it is submitted to and approved by the Commissioner.
(2)    A bylaw, rule, or regulation is considered approved if the Commissioner does not notify the Corporation of disapproval and the reasons for it within 30 days after submission of the bylaw, rule, or regulation.
(3)    The Commissioner may disapprove a bylaw, rule, or regulation only if the Commissioner has reason to believe that:
(i)    It is contrary to the principles or purposes of this title; or
(ii)    It does not serve the best interests of the public.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-112 - Independent Audits of Members

The Corporation may require independent audits and investigations of any member to determine the member’s financial condition as it relates to insurance of share and deposit accounts. These audits and investigations shall be made at the expense of the credit union.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-113 - Cooperation and Exchange of Information

(a)    This section applies notwithstanding any other provisions of law.
(b)    (1)    The Corporation and the Commissioner may exchange information about credit unions.
(2)    The Commissioner shall make available to the Corporation all examinations of credit unions that are members of the Corporation.
(c)    If a credit union is not incorporated under the laws of this State, the credit union may not be accepted as a member of the Corporation unless it submits a written statement from the agency that regulates it stating that the agency will cooperate with the Commissioner in carrying out the provisions of this title.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part II - Establishment; Powers; Membership › Section 7-116 - Exemption From Taxation

The Corporation is exempt from all taxes imposed by this State or any of its political subdivisions under §§ 20–101, 20–104, 20–108, 20–113 through 20–127, 20–601, 20–603 through 20–609, 20–805, and 20–806, and Title 20, Subtitles 3 through 5 of the Local Government Article, Title 6, Subtitle 1 of the Insurance Article, the Tax – General Article, or the Tax – Property Article.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part III - Phase-Out; Dissolution › Section 7-118 - End of Authority to Accept Applications; Notice

(a)    The Corporation may not accept an application from a credit union for new membership on or after the date that the Commissioner issues the first certificate of authority under § 7-203 of this title.
(b)    The Commissioner shall notify the Corporation of the date that the Commissioner issues the first certificate of authority under § 7-203 of this title.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 1 - Credit Union Insurance Corporation › Part III - Phase-Out; Dissolution › Section 7-119 - Primary Share Guaranty Insurance

(a)    A credit union that is a member of the Corporation shall obtain primary share guaranty insurance with:
(1)    The National Credit Union Administration Share Insurance Program; or
(2)    A credit union share guaranty corporation regulated under Subtitle 2 of this title that is approved by the Commissioner to provide primary share guaranty insurance at least to the same extent and amount as provided by the National Credit Union Administration Share Insurance Program.
(b)    A credit union that is a member of the Corporation shall comply with the provisions of subsection (a) of this section within 2 years after the date that the Commissioner issues the first certificate of authority under § 7-203 of this title.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 2 - Credit Union Share Guaranty Corporations › Section 7-201 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    Unless the context requires otherwise, “credit union” has the meaning stated in § 6-101(d) of this article.
(c)    “Credit union share guaranty corporation” means a corporation that is:
(1)    Engaged in the business of providing primary share guaranty insurance for the share and deposit accounts of a credit union; and
(2)    Regulated under this subtitle.
(d)    “Participating credit union” means a credit union that has applied for and been admitted to participation in a credit union share guaranty corporation and whose participation has not terminated.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 2 - Credit Union Share Guaranty Corporations › Section 7-203 - Certificate of Authority Required

(a)    A person may not conduct business as a credit union share guaranty corporation unless the person has a certificate of authority issued by the Commissioner under this subtitle.
(b)    A certificate of authority issued by the Commissioner under this subtitle is not transferrable.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 2 - Credit Union Share Guaranty Corporations › Section 7-204 - Insuring Share and Deposit Accounts

(a)    A credit union share guaranty corporation shall insure and guarantee the share and deposit accounts of each participating credit union to at least the same extent and amount as provided by the National Credit Union Administration Share Insurance Program.
(b)    A credit union share guaranty corporation may make contracts for reinsurance.
2023 Maryland Statutes › Financial Institutions › Title 7 - Credit Union Share Insurance › Subtitle 2 - Credit Union Share Guaranty Corporations › Section 7-205 - Certificate of Authority -- Qualifications; Limitations

(a)    To qualify for a certificate of authority under this subtitle, an applicant shall satisfy the Commissioner that the applicant:
(1)    Is trustworthy and reputable;
(2)    Has a good business reputation;
(3)    If domiciled outside the State, is currently licensed and authorized to engage in the credit union share guaranty business in its state of domicile;
(4)    Has and will maintain retained earnings or equity capital of at least $5,000,000, computed in accordance with generally accepted accounting principles;
(5)    Is in compliance with:
(i)    Its charter and this subtitle; and
(ii)    If domiciled outside the State, all laws and regulations applicable to credit union share guaranty corporations in its state of domicile;
(6)    Will conduct the credit union share guaranty business in the State in a manner that will adequately protect the share and deposit accounts of its participating credit unions; and
(7)    Will maintain reserves for guaranty losses in compliance with § 7-217 of this subtitle.
(b)    A person may not be authorized to engage in the credit union share guaranty business in the State if the person has or uses a name that is so similar to the name of a credit union share guaranty corporation already issued a certificate of authority under this subtitle as to tend to cause uncertainty or confusion or to deceive or mislead.