Ch. 326                                    1996 LAWS OF MARYLAND

(2) If the [Bank] Commissioner approves, for an additional period not
exceeding 5 years.

9-1102.

A mutual association may convert to a credit union if:

(1)     Its members approve; and

(2)     Approval is granted by:

(i) The Division Director; and

(ii) The [Bank] Commissioner OF FINANCIAL REGULATION.
9-1105.

(a)     To convert to a credit union, the mutual association shall deliver to the
[Bank] Commissioner:

(1)     A written application for conversion in the form that the Department of
Labor, Licensing, and Regulation requires;

(2)     Any additional exhibits the Department may require;

(3)     Any filing fee set by the Department by regulation; and

(4)     Its proposed amended articles and bylaws.

(b)     Upon receipt of an application to convert, the [Bank] Commissioner shall
examine the mutual association.

(c)     The examination shall include, but not be limited to, the following:

(1)     The financial history and condition of the mutual association including:

(i) The identification of overvalued assets, undisclosed nonperforming
loans, and understated liabilities;

(ii) The identification of assets that may become nonperforming assets
upon conversion;

(iii) The identification of loans in default and loans past due over 60
days;

(iv) Review of material litigation affecting the mutual association, and
the identification of significant judgments, orders or decrees affecting its financial status;
and

(v) Review of mortgage contracts, participating loans, and other
commitments.

(2)     The management of the association.

- 1972 -