BLAIR LEE III, Acting Governor

1217

(Senate Bill 121)

AN ACT concerning

Credit Unions

FOR the purpose of increasing the sum of money a credit
union member may obtain through an unsecured loan from
the credit union; limiting the total amount of money
any one member may borrow directly or indirectly from a
credit union; making certain types of loan security
subject to the approval of the Commissioner; and making
certain style changes.

BY repealing and reenacting, with amendments,

Article 11 - Banks and Trust Companies

Section 152(a) and (b)

Annotated Code of Maryland

(1976 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 11 — Banks and Trust Companies

152.

(a) A credit union may loan to its members for such
purposes, and upon such security and terms as the bylaws
shall provide, and the credit committee may approve, but
security need not re taken for any loan of [four hundred
dollars ($400.00)] $400 or less. [In any case where the
loan is in excess of four hundred dollars ($400.00) up to a
maximum of twenty—five hundred dollars ($2,500.00), it shall
be subject to the prior written approval of the Bank
Commissioner.] UPON THE APPROVAL OF THE COMMISSIONER, A
CREDIT ONION MAY MAKE TO ITS MEMBERS UNSECURED LOANS UP TO A
MAXIMUM OF $3,500. THE TOTAL OF ALL TYPES OF LOANS THAT A
CREDIT UNION MAY MAKE TO ANY ONE MEMBER DIRECTLY AND
INDIRECTLY MAY NOT EXCEED 10 PERCENT OF THE CREDIT UNION'S
PAID-IN AND UNIMPAIRED CAPITAL AND SURPLUS.

(b) An endorsed note, or a note secured by a duly
recorded lien upon unencumbered real or leasehold property,
or the assignment of shares and deposits in the credit
union, may be deemed security by the credit committee within
the meaning of this subtitle. ALL OTHER TYPES OF SECURITY
MUST BE APPROVED BY THE COMMISSIONER. No member of the
board of directors, credit committee or the supervisory
committee shall directly or indirectly borrow from or become
security for a loan or advance made by the corporation, in
excess of the total of his shares and deposits, or in excess
of the total of paid—in shares and deposits, held by him and
his comakers in said credit union, unless said loan shall
have been approved by majority vote at meetings in the