1278

LAWS OF MARYLAND

Ch. 243

the same power to consumate, negotiate, transact, or
engage in credit union activity under the same
conditions and restrictions as are now permitted under
federal law to any federal credit union; and generally
relating to the reserve fund and the powers of credit
unions.

BY repealing and reenacting, with amendments,

Article 11 - Banks and Trust Companies

Section 151

Annotated Code of Maryland

(1976 Replacement Volume and 1977 Supplement)

BY adding to

Article 11 — Banks and Trust Companies

Section 141A

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be repealed, amended, or enacted to read as follows: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

141A.

NOTWITHSTANDING THE RESTRICTIONS AND LIMITATIONS IN
THIS ARTICLE OR THE CORPORATIONS AND ASSOCIATIONS ARTICLE,
ANY CREDIT UNION INCORPORATED UNDER SECTION 6-301, ET SEQ.,
CORPORATIONS AND ASSOCIATIONS ARTICLE, MAY CONSUMMATE,
NEGOTIATE, TRANSACT OR ENGAGE IN ANY ADDITIONAL CREDIT UNION
ACTIVITY OR CREDIT UNION RELATED SERVICE UNDER THE SAME
CONDITIONS, LIMITATIONS, RESTRICTIONS AND SAFEGUARDS AS ARE
NOW OR HEREAFTER APPLICABLE OR PERMITTED UNDER FEDERAL LAW
OR REGULATION TO ANY FEDERAL CREDIT UNION. THIS POWER MAY
BECOME AVAILABLE TO STATE CHARTERED CREDIT UNIONS WITH THE
AUTHORIZATION OF THE BANK COMMISSIONER AND THE MARYLAND
CREDIT UNION INSURANCE CORPORATION.

154.

All entrance fees, transfer fees and fines shall, after
the payment of the organization expenses, be known as
reserve income and shall be added to the reserve fund of the
corporation. [At the close of each fiscal year there
shall be set apart to the reserve fund 20% of the net income
of the corporation, which has been earned for the year.
This amount may be increased by vote of the members of the
credit union on the recommendation of the board of
directors. The reserve fund shall belong to the
corporation and shall be held to meet contingencies rising
through losses in loans, etc., and shall not be distributed
to members, except upon dissolution of the corporation.