S.B. 211

VETOES

House Bill 282, which was passed by the General Assembly and signed by me on May 26,
1994, accomplishes the same purpose. Therefore; it is not necessary for me to sign Senate
Bill 211.

Sincerely,         

William Donald Schaefer
Governor

Senate Bill No. 211

AN ACT concerning

Credit Unions - Loans - Required Security

FOR the purpose of altering the circumstances under which a credit union may make an
unsecured 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.

(b)     [(1)] A credit union may make a loan [of $400 or less] to a member
without security[.] IF:

(1) THE CREDIT UNION HAS RECEIVED THE APPROVAL OF THE BANK
COMMISSIONER FOR A POLICY COVERING ALL UNSECURED LENDING; AND

(2) [With the approval of the Bank Commissioner, a credit union may make
loans of $10,000 $15,000 $20,000 or less to members without security] THE LOAN IS MADE
IN ACCORDANCE WITH THE APPROVED POLICY.

(c)     A credit union may accept as security for a loan:

(1)     An endorsed note;

(2)     A note secured by a recorded first or second lien on real property;

(3)     An assignment of shares or deposits in the credit union; or

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