PARRIS N. GLENDENING, Governor                             Ch. 679

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1997.

Approved May 22, 1997.

CHAPTER 679

(House Bill 587)

AN ACT concerning

Credit Unions - Loans to Members, Reserve Fund, and Power to Borrow and Risk Assets

FOR the purpose of altering the circumstances under which a credit union may make an
unsecured loan to a member; providing certain exceptions to the requirement that
repealing certain requirements relating to an application for a loan from a credit
union to a member must state the purpose for which the loan is requested; altering
the definition of "risk assets" by excluding certain additional assets of a credit union
from the definition; providing certain exceptions to the limitation on a credit
union's authority to borrow money for longer than a certain time period; defining a
certain term; and generally relating to credit unions.

BY repealing and reenacting, with amendments,
Article - Financial Institutions

Section 6-505, 6-508, 6-602(a). and 6-601 Section 6-505 and 6-602(a)
Annotated Code of Maryland
(1992 Replacement Volume and 1996 Supplement)

BY repealing

Article - Financial Institutions

Section 6-508

Annotated Code of Maryland

(1992 Replacement Volume and 1996 Supplement)

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

Article - Financial Institutions

6-505.

(a)     A loan by a credit union to a member shall be secured as required by the
credit union, subject to the provisions of this section.

(b)     [(1)] A credit union may make a loan [ of $400 or less] to a member without
security[.

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

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