PARRIS N. GLENDENING, Governor

Ch. 11

(3) ON DEFAULT, EXTENSION, OR RECASTING OF THE DEBT, THE
INSURANCE MAY BE CONTINUED FOR UP TO 6 MONTHS BEYOND THE 18 MONTHS
SPECIFIED IN PARAGRAPH (2) OF THIS SUBSECTION.

(F) INSURANCE PAYABLE TO CREDITOR.

(1)      THE INSURANCE SHALL BE PAYABLE TO THE CREDITOR.

(2)      THE PAYMENT SHALL BE USED TO REDUCE OR EXTINGUISH THE
UNPAID INDEBTEDNESS OF THE DEBTOR TO THE EXTENT OF THE PAYMENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 423.

In subsection (b)(2)(ii), in the introductory language of (c)(1), and in
subsection (f) of this section, the reference to the "creditor" is substituted for
the former reference to the "policyholder" in light of subsection (a)(2) of this
section.

In subsection (b)(2)(ii) of this section, the reference to "proprietorships" is
substituted for the former reference to "proprietors" to conform with the
reference to "partnerships".

In subsection (b)(3) of this section, the reference to a debtor's being eligible
"for insurance under the policy" is added for clarity.

In subsection (c)(2) and the introductory language of (3) of this section, the
word "paid" is substituted for the former word "derived" for consistency
throughout this section and this subtitle.

Defined terms: "Insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101

17-207. CREDIT UNIONS.

(A)     IN GENERAL.

(1)      SUBJECT TO THE REQUIREMENTS OF THIS SECTION, THE LIVES OF A
GROUP OF INDIVIDUALS MAY BE INSURED UNDER A POLICY ISSUED TO A CREDIT
UNION ORGANIZED IN ACCORDANCE WITH STATE LAW OR THE FEDERAL CREDIT
UNION ACT TO COVER MEMBERS OF THE CREDIT UNION FOR THE BENEFIT OF
PERSONS OTHER THAN THE CREDIT UNION OR ITS OFFICIALS.

(2)      THE CREDIT UNION TO WHICH THE POLICY IS ISSUED IS DEEMED
THE POLICYHOLDER.

(B)      MEMBERS ELIGIBLE FOR INSURANCE.

ALL MEMBERS OF THE CREDIT UNION, OR ALL OF ANY CLASS OR CLASSES OF
MEMBERS DETERMINED BY CONDITIONS PERTAINING TO THEIR AGE OR

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