Ch. 546

1994 LAWS OF MARYLAND

(2) Any funds paid toward the purchase of shares or other interest in a
financial organization, or any deposit made with these funds, and any interest or
dividends on these, excluding any charges that lawfully may be withheld, unless, within 5
years, the owner has:

(i) Increased or decreased the amount of the funds or deposit, or
presented an appropriate record for the crediting of interest or dividends;

(ii) Corresponded in writing with the financial organization concerning
the funds or deposit; [or]

(III) ENGAGED IN ANY CREDIT, SHARE, OR OTHER DEPOSIT
TRANSACTION WITH THE FINANCIAL ORGANIZATION; OR                                           

[(iii)](IV) Otherwise indicated an interest in the funds or deposit as
evidenced by a memorandum on file with the financial organization;

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

Approved May 26, 1994.

CHAPTER 546
(House Bill 282)

AN ACT concerning

Credit Unions - Loans - Required Security

FOR the purpose of altering the circumstances under which a credit union may make an
unsecured a loan to a member increasing the amount of a loan that a credit union may
make to a member without security.

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 6-505

Annotated Code of Maryland
(1992 Replacement Volume and 1993 Supplement)

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

Article - Financial Institutions

6-505.                                                  

(a) A loan by a credit union to a member shall be secured as required by the
credit union, subject to the provisions of this section.

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