Ch. 658                            MARVIN MANDEL, Governor                              1369

CHAPTER 658
(Senate Bill 172)

AN ACT to repeal and re-enact, with amendments, Section 140A of Article 11 of
the Annotated Code of Maryland (1972 Supplement), tide "Banks and Trust
Companies", subtitle "Credit Unions", to add new Sections 451 through 465,
inclusive, to Article 23 of the Annotated Code of Maryland (1971 Supplement)
title "Corporations", subtitle "III. Particular Clauses of Corporations", to
follow immediately after Section 450 thereof and to be under the new
subheading "Maryland Credit Union Insurance Corporation", to require all
state chartered credit union accounts to be insured [[, to allow them to join]]
by the Maryland Credit Union Insurance Corporation, to create the Maryland
Credit Union Insurance Corporation' under the general supervision of the
Banking Commissioner, providing for composition of the Board of Directors,
granting certain powers, establishing certain qualifications for membership,
defining certain terms and generally relating to state chartered credit union
accounts.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 140A of Article 11 of the Annotated Code of
Maryland (1972 Supplement), title "Banks and Trust Companies", subtitle "Credit
Unions", be and it is hereby repealed and re-enacted, with amendments, to read as
follows:

ARTICLE 11

140 A.

(A) ALL SHARE AND DEPOSIT ACCOUNTS OF MEMBERS OF EVERY
CREDIT UNION ORGANIZED UNDER THE LAWS OF THIS STATE
SHALL BE INSURED AFTER JULY 1, [[1974]] 1975, TO THE EXTENT
PERMITTED BY THE INSURER FROM WHICH THE INSURANCE IS
OBTAINED. THE INSURANCE [[MAY]] SHALL BE OBTAINED FROM
THE [[NATIONAL CREDIT UNION ADMINISTRATION SHARE
INSURANCE PROGRAM, THE MARYLAND CREDIT UNION
INSURANCE CORPORATION, OR ANY INSURER LICENSED FOR THIS
TYPE OF INSURANCE IN MARYLAND.]] MARYLAND CREDIT UNION
INSURANCE CORPORATION. ANY CREDIT UNION EXISTING UNDER
THE LAWS OF THIS STATE WHICH FAILS TO OBTAIN SUCH
INSURANCE BY JULY 1, [[1974]] 1975, SHALL BE DEEMED TO HAVE
ELECTED TO BE LIQUIDATED AND SHALL BE LIQUIDATED BY THE
BANK COMMISSIONER PURSUANT TO ARTICLE 11, SECTION 141B.
PROVIDED, HOWEVER, THE BANK COMMISSIONER SHALL MAKE
EVERY EFFORT TO PREVENT THE CLOSING OF ANY SUCH STATE
CHARTERED CREDIT UNION AND MAY EXTEND THE TIME FOR
LIQUIDATION FOR A PERIOD OF UP TO ONE YEAR IF THE
COMMISSIONER FINDS SUCH EXTENSION WOULD NOT BE
CONTRARY TO THE PUBLIC INTEREST.

[(a)] (B) Every credit union heretofore or hereafter organized under the laws of
this State, is specifically granted the power and authority, if the action is approved
by a vote of a majority of its board of directors, to participate in the national
credit union administration share insurance program and to pay such
administration any proper assessment made by it upon its insured credit unions
and to comply with the provisions which may be applicable: to such credit unions