Ch. 679                                    1997 LAWS OF MARYLAND

(1)     THE COMMISSIONER HAS APPROVED A POLICY FOR THE CREDIT
UNION THAT COVERS ALL UNSECURED LENDING; AND

(2)     THE LOAN IS MADE IN ACCORDANCE WITH THE APPROVED POLICY.
(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 Commissioner.
6-508.

Each application for a loan to a member shall be in writing and state:

(1) The purpose for which the loan is requested, EXCEPT ON
APPLICATIONS THAT ARE PREPRINTED FOR SPECIFIC LOANS OR APPLICATIONS FOR

OPEN END CREDIT; and

(2) The security, if any, that is offered.
6-602.

(a) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "CORPORATE CREDIT UNION" MEANS A CREDIT UNION THAT:

(I) IS OPERATED PRIMARILY FOR THE PURPOSE OF SERVING
OTHER CREDIT UNIONS;

(II) IS DESIGNATED BY THE NATIONAL CREDIT UNION
ADMINISTRATION AS A CORPORATE CREDIT UNION; AND

(III) LIMITS NATURAL PERSON MEMBERS TO THE MINIMUM
REQUIRED BY STATE OR FEDERAL LAW TO CHARTER AND OPERATE THE CREDIT

UNION.

(3) [In this section, "risk assets"] "RISK ASSETS" means all assets of a
credit union except:

[(1)](I) Cash;

[(2)] (II) Deposits and shares in federally or State insured banks and savings
and loan associations;

[(3)] (III) Assets that are insured or fully guaranteed by or due from the
United States, its agencies, the Federal National Mortgage Association, or the
Government National Mortgage Association;

[(4)] (IV) Student loans insured under Title IV, Part B of the Higher
Education Act of 1965 or a similar State program;

- 3914 -