Ch. 635                                          LAWS OF MARYLAND

(C) THE EXAMINATION SHALL INCLUDE, BUT NOT BE LIMITED TO,
THE FOLLOWING:

(1) THE FINANCIAL HISTORY AND CONDITION OF THE MUTUAL
ASSOCIATION INCLUDING:

(II)  THE IDENTIFICATION OF OVERVALUED ASSETS,
UNDISCLOSED NONPERFORMING LOANS, AND UNDERSTATED LIABILITIES;

(III)  THE IDENTIFICATION OF ASSETS THAT MAY
BECOME NONPERFORMING ASSETS UPON CONVERSION;

(IV)  THE IDENTIFICATION OF LOANS IN DEFAULT AND
LOANS PAST DUE OVER 60 DAYS;

(V)  REVIEW OF MATERIAL LITIGATION AFFECTING THE
MUTUAL ASSOCIATION, AND THE IDENTIFICATION OF SIGNIFICANT
JUDGMENTS, ORDERS OR DECREES AFFECTING ITS FINANCIAL STATUS; AND

(VI)  REVIEW OF MORTGAGE CONTRACTS,
PARTICIPATING LOANS, AND OTHER COMMITMENTS.

(2) THE MANAGEMENT OF THE ASSOCIATION.

(D) AS A CONDITION OF APPROVAL OF AN APPLICATION OF
CONVERSION, THE BANK COMMISSIONER MAY REQUIRE A MUTUAL
ASSOCIATION TO HAVE ITS BOOKS AND RECORDS AUDITED AND CERTIFIED
UNDER § 9-502 OF THIS TITLE.

9-1106.

THE SECRETARY OF LICENSING AND REGULATION MAY APPOINT AN
OFFICIAL TO:

(1) COORDINATE AND ADMINISTER THE APPLICATION AND
CONVERSION, AND

(2) ASSIST THE DIVISION DIRECTOR AND THE BANK

COMMISSIONER.

9-1107 9-1106.

(A) IN REVIEWING AN APPLICATION FOR CONVERSION, THE
DIVISION DIRECTOR AND THE BANK COMMISSIONER SHALL DETERMINE:

(1)  WHETHER, AFTER CONVERSION, THE CREDIT UNION WILL
BE IN SOUND FINANCIAL CONDITION AND WILL BE SOUNDLY MANAGED; AND

(2)  THAT NO PERSON WILL RECEIVE ANY INEQUITABLE GAIN
OR ADVANTAGE BY REASON OF THE CONVERSION.

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