H.B. 94

VETOES

Sincerely,

Parris N. Glendening

Governor

House Bill No. 94

AN ACT concerning

Credit Unions - Voluntary Receivership

FOR the purpose of requiring the board of directors of a credit union proposing a

voluntary receivership to take certain actions; and altering the manner in which a

voluntary receivership is approved by the members of a credit union; authorizing the

Bank Commissioner to waive a certain requirement under certain circumstances;

, and generally relating to the placement of credit unions in voluntary receivership.

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 6-704

Annotated Code of Maryland
(1992 Replacement Volume and 1994 Supplement)

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

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.

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