394

LAWS OF MARYLAND

Ch. 33

7-111. BYLAWS, RULES, AND REGULATIONS.

(A)        ADOPTION BY BOARD.

THE BOARD OF DIRECTORS OF THE CORPORATION SHALL ADOPT
BYLAWS FOR THE CORPORATION AND RULES AND REGULATIONS TO
CARRY OUT THE PROVISIONS OF THIS TITLE.

(B)   APPROVAL BY COMMISSIONER.

(1)   A BYLAW, RULE, OR REGULATION BECOMES
EFFECTIVE ONLY AFTER IT IS SUBMITTED TO AND APPROVED BY THE
BANK COMMISSIONER.

(2)   A BYLAW, RULE, OR REGULATION IS CONSIDERED
APPROVED IF THE BANK COMMISSIONER DOES NOT NOTIFY THE
CORPORATION OF DISAPPROVAL AND THE REASONS FOR IT WITHIN 30
DAYS AFTER SUBMISSION OF THE BYLAW, RULE, OR REGULATION.

(3)   THE BANK COMMISSIONER MAY DISAPPROVE A
BYLAW, RULE, OR REGULATION ONLY IF THE BANK COMMISSIONER HAS
REASON TO BELIEVE THAT:

(I)   IT IS CONTRARY TO THE PRINCIPLES OR
PURPOSES OF THIS TITLE; OR

(II)   IT DOES NOT SERVE THE BEST INTERESTS
OF THE PUBLIC.

REVISOR'S NOTE: This section is new language derived
without substantive change from the last two
sentences of Art. 23, § 451 and the second and
third sentences of Art. 23, § 457.

The present reference to the power to "amend"
bylaws, rules, and regulations is deleted as
unnecessary. The power to amend is inherent in
the power to adopt.

The first sentence of present Art. 23, § 457,
which deals with the adoption of the original
bylaws, rules, and regulations of the
Corporation, is deleted as obsolete. The last
sentence of that section, which deals with limits
on insurance, now appears in § 7—105 of this
title.

Although the last two sentences of present Art.
23, § 451 imply that bylaws need not be approved
by the Bank Commissioner, present Art. 23, § 457
— and, therefore, this revision — expressly
require this approval.

7-112. INDEPENDENT AUDITS OF MEMBERS.

THE CORPORATION MAY REQUIRE INDEPENDENT AUDITS AND