Ch. 326                                    1996 LAWS OF MARYLAND .

(2) With the approval of the [Bank] Commissioner, a credit union may
make loans of $20,000 or less to members without security.

(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

(4)     Any other kind. of security that is approved by the [Bank]
Commissioner.

6-506.

(a)     With the approval of the [Bank] Commissioner, a credit union may make
loans to members as provided in this section.

6-601..

(b)     No credit union may voluntarily terminate its insurance with the National
Credit Union Administration Share Insurance Program without prior approval of the
[Bank] Commissioner.

6-602.

(a)     In this section, "risk assets" means all assets of a credit union except:

(6) Common trust investments authorized by the [ Bank] Commissioner;

(b)     Each credit union shall have a reserve fund to meet losses on loans and to
meet other contingencies that the [ Bank] Commissioner specifies. The reserve fund may
be distributed to the members of the credit union only on dissolution of the credit union.

6-603.

(a) The capital, deposits, surplus, and reserves of a credit union that are not
committed for loans may be:

(1)     Deposited in State banking institutions, national banking associations
located in this State, or insured savings and loan associations located in this State;

(2)     Invested in general obligations of or obligations guaranteed by the
United States, this State, or any political subdivision;

(3)     Invested in certificates of deposit with the prior approval of the [Bank]
Commissioner; or

(4)     Deposited or invested in any other manner that the [Bank]
Commissioner approves.

6-604.

A credit union may borrow money for not longer than 1 year from any source,
including another credit union, as long as the total borrowing does not exceed 50 percent

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