PARRIS N. GLENDENING, Governor

Ch. 11

(2)     THE STATE MAY NOT BUDGET FOR OR PROVIDE GENERAL FUND
APPROPRIATIONS TO THE CORPORATION.

(3)     THE DEBTS, CLAIMS, OBLIGATIONS, AND LIABILITIES OF THE
CORPORATION ARE NOT A DEBT OF THE STATE OR A PLEDGE OF THE CREDIT OF
THE STATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 525 and item (1) of the second sentence of §
521.

In subsection (a)(1) of this section, the former reference to the Corporation
being "created" is deleted as unnecessary and obsolete. Similarly, in
subsection (a)(3) of this section, the word "established" is substituted for the
former word "created" for consistency with terminology used in other revised
articles of the Code.

In subsection (h)(3) of this section, the former reference to the "full faith"
and credit of the State is deleted for consistency with similar provisions
throughout this article. See, e.g., § 9-304(g) of this title and § 25-404(b) of this
article.

Defined terms: "Account" § 9-401
"Commissioner" § 1-101
"Corporation" § 9-401
"Insurance business" § 1-101
"Member insurer" § 9-401

9-406. BOARD OF DIRECTORS.

(A)     MEMBERSHIP; TERMS.

(1)     THE BOARD OF DIRECTORS OF THE CORPORATION CONSISTS OF AT
LEAST FIVE MEMBERS BUT NOT MORE THAN NINE MEMBERS.

(2)     THE MEMBERS OF THE BOARD SHALL BE ELECTED FROM AMONG
THE MEMBER INSURERS.

(3)     THE TERMS OF THE MEMBERS OF THE BOARD SHALL BE AS SET BY
THE PLAN OF OPERATION.

(4)     A VACANCY ON THE BOARD SHALL BE FILLED FOR THE REMAINDER
OF THE TERM BY A MAJORITY VOTE OF THE REMAINING MEMBERS OF THE BOARD.

(B)     OFFICERS.

(1)     THE BOARD OF DIRECTORS SHALL ELECT A CHAIRMAN AND
APPOINT AN EXECUTIVE COMMITTEE.

(2)     THE BOARD MAY ELECT OTHER OFFICERS.

(C)     FAIR REPRESENTATION.

- 325 -