Ch. 635

LAWS OF MARYLAND

Section l-301(d), 6-210, 6-214, 6-502, 6-503, 7-104, and

7-109
Annotated Code of Maryland
(1986 Replacement Volume and 1987 Supplement)

BY adding to

Article - Financial Institutions

Section 9-1101 through 9-1110 9-1109 to be under the new

subtitle "Subtitle 11. Mutual Association Conversion

to a Credit Union"
Annotated Code of Maryland
(1986 Replacement Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 56 - Licenses

227A.

(a) In any case in which a licensee hereunder is entrusted
with, or receives and accepts, or otherwise holds, deposit moneys
or other trust moneys, of whatever kind or nature, or instruments
representing the same, concerning transactions involving real
estate within the State of Maryland, such moneys or instruments,
in the absence of proper written instructions to the contrary,
shall be expeditiously deposited in an account in a financial
institution located within Maryland whose deposits are insured by
either the Federal Deposit Insurance Corporation, the Federal
Savings and Loan Insurance Corporation, the National Credit Union
Administration, the State of Maryland Deposit Insurance Fund
Corporation, or the [Maryland] Credit Union Insurance Corporation
maintained by the broker as a separate account for funds
belonging to others. Except as provided under subsection (d) of
this section, these funds shall be retained in that account until
the transaction involved is consummated or terminated, or. until
proper written instructions have been received by the broker
directing the withdrawal and other disposition of the funds, at
which time all funds shall be promptly and fully accounted for by
the broker. A licensee hereunder may not commingle any funds with
his own or use any funds for any purpose other than the purpose
for which the funds were entrusted to him.

Article - Financial Institutions

1-301.

(d) "Supervisory agency" means:

(1) The Federal Deposit Insurance Corporation;

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