390

LAWS OF MARYLAND

Ch. 33

and certain other credit unions authorized to do
business here. As to the requirement that State
credit unions be members of the Corporation
before doing business, see § 6-601 of this
article.

7-107. MEMBERSHIP — QUALIFICATIONS; TERM; TERMINATION;
DUTIES.

(A)   QUALIFICATIONS.

(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 BANK
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)   TERM OF MEMBERSHIP.

SUBJECT TO THE BYLAWS, RULES, AND REGULATIONS OF THE
CORPORATION AND EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS
SECTION, MEMBERSHIP IN THE CORPORATION CONTINUES AS LONG AS
THE CORPORATION EXISTS.

(C)   TERMINATION OF MEMBERSHIP.

(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 BANK
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.