WILLIAM DONALD SCHAEFER, Governor Ch. 635

mutual association from converting without approval of its
members, the savings and loan director, and Bank
Commissioner; requiring the Secretary of Licensing and
Regulation Bank Commissioner to examine a mutual association
that applies for conversion to a credit union; authorizing
the Bank Commissioner to order an audit of a converting
mutual association; specifying that the examination should
include, but not be limited to, the financial history
management of the association; requiring mutual associations
to submit written applications, exhibits, filing fees, and
proposed amended articles and bylaws in order to convert to
a credit union; setting forth conditions for approval of an
application for conversion to a credit union, and requiring
the Bank Commissioner and the savings and loan director to
make certain determinations in evaluating an application for
conversion; requiring certain filings; modifying the
calculation of a tax imposed on the net earnings of a mutual
association that converts to a credit union in certain
cases; providing that a savings and loan association may
hold certain nonconforming loans and investments after its
conversion to a credit union; repealing the Governor's
authority to appoint Credit Union Insurance Corporation
board members and providing for the staggering of the terms
of the new elected members; requiring credit union members
to have certain common bonds; making the use of credit
committees by credit unions optional; providing for the
amount a converting mutual association is required to credit
to the reserves; clarifying the types of investments that
the Credit Union Insurance Corporation may make; altering a
certain definition; defining certain terms; and generally
relating to credit unions and the conversion of mutual
associations to credit unions.

BY repealing and reenacting, with amendments,

Article 56 - Licenses

Section 227A(a)

Annotated Code of Maryland

(1983 Replacement Volume and 1987 Supplement)

BY repealing and reenacting, without amendments,

Article - Financial Institutions

Section 6-602, 7-102, and 7-117

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

BY repealing and reenacting, with amendments,
Article - Financial Institutions

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