2812

LAWS OF MARYLAND

Ch. 810

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland

(as enacted by Chapter ____ (H.B. 1) of the Acts of the

General Assembly of 1980) be repealed, amended, or enacted
to read as follows:

Article - Financial Institutions

6-701A 6-701.1.

(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:

(B) (1) ALL OF THE REQUIREMENTS FOR CONVERSION SET BY
THE JURISDICTION WHERE THE CREDIT UNION IS ORGANIZED OF THIS
TITLE FOR THE INCORPORATION OF A CREDIT UNION IN THIS STATE;
AND

(2) ALL OF THE REQUIREMENTS OF THE BANK
COMMISSIONER.

(C)  A MAJORITY OF THE BOARD OF DIRECTORS 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 OF THE CREDIT UNION, EITHER AT A
MEETING TO BE HELD ON THAT DATE OR BY WRITTEN BALLOT TO BE
FILED ON OR BEFORE THAT DATE.

(D)  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) THE PROPOSED CONVERSION SHALL BE APPROVED BY
THE AFFIRMATIVE VOTE OF A MAJORITY OF THE MEMBERS VOTING AT
A MEETING CALLED FOR THAT PURPOSE.

(2) WITHIN 10 DAYS AFTER THE VOTE, A STATEMENT
OF THE RESULTS OF THE VOTE SHALL BE FILED WITH THE BANK
COMMISSIONER. THE STATEMENT SHALL BE VERIFIED BY THE
PRESIDENT OR VICE PRESIDENT AND THE SECRETARY.

(F)  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.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.