PARRIS N. GLENDENING, Governor

Ch. 359

Article - Financial Institutions

6-704.

(a) Any credit union voluntarily may place its business and assets in the hands of
the Bank Commissioner for liquidation as provided in this section.

(B) A MAJORITY OF THE BOARD OF DIRECTORS OF A CREDIT UNION
PROPOSING A VOLUNTARY RECEIVERSHIP SHALL:

(1)     ADOPT A RESOLUTION THAT DECLARES THAT THE VOLUNTARY
RECEIVERSHIP IS ADVISABLE; AND

(2)     SET A DATE FOR A VOTE ON THE PROPOSED VOLUNTARY
RECEIVERSHIP BY THE MEMBERS OF THE CREDIT UNION, EITHER AT A MEETING TO
BE HELD ON THAT DATE OR BY MAIL BALLOT TO BE FILED ON OR BEFORE THAT
DATE.

[(b)](C) THE BANK COMMISSIONER, AT THE REQUEST OF THE BOARD OF
DIRECTORS OF A CREDIT UNION, MAY WAIVE THE REQUIREMENT FOR A MAIL
BALLOT AND MAY SUBSTITUTE ANY REASONABLE METHOD OF DETERMINING THE
VOTE OF THE MEMBERS.

(D) The proposed [action] VOLUNTARY RECEIVERSHIP shall be approved by
the affirmative vote of a majority of the members [present at a meeting called for that
purpose] OF THE CREDIT UNION WHO VOTE ON THE PROPOSAL.

[(c)] (D) (E) After the action is approved by the members, the proper officers of
the credit union shall certify the action of the members to the Bank Commissioner, and
the Bank Commissioner shall post a notice at each office of the credit union that states:
"This credit union is in the hands of the Maryland Bank Commissioner for liquidation."

[(d)](E) (F) If a credit union is placed in the hands of the Bank Commissioner
under this section, the Bank Commissioner shall place the credit union in receivership for
liquidation in the same manner as provided for a banking institution under Title 5,
Subtitle 6 of this article.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1995.

Approved May 18, 1995.

CHAPTER 359
(Senate Bill 123)

AN ACT concerning

Credit Unions - Loan Officers

FOR the purpose of authorizing the officer in charge of operations of a credit union to

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