Section 7-202 – Applicability
The provisions of this subtitle do not apply to the Credit Union Insurance Corporation established under Subtitle 1 of this title.
Section 7-203 – Certificate of Authority Required
(a) A person may not conduct business as a credit union share guaranty corporation unless the person has a certificate of authority issued by the Commissioner under this subtitle. (b) A certificate of authority issued by the Commissioner under this subtitle is not transferrable.
Section 7-204 – Insuring Share and Deposit Accounts
(a) A credit union share guaranty corporation shall insure and guarantee the share and deposit accounts of each participating credit union to at least the same extent and amount as provided by the National Credit Union Administration Share Insurance Program. (b) A credit union share guaranty corporation may make contracts for reinsurance.
Section 7-205 – Certificate of Authority — Qualifications; Limitations
(a) To qualify for a certificate of authority under this subtitle, an applicant shall satisfy the Commissioner that the applicant: (1) Is trustworthy and reputable; (2) Has a good business reputation; (3) If domiciled outside the State, is currently licensed and authorized to engage in the credit union share guaranty business in its state of domicile; (4) Has and will […]
Section 7-206 – Certificate of Authority — Applications
(a) (1) To apply for a certificate of authority, an applicant shall sign and submit to the Commissioner an application made under oath on the form that the Commissioner requires. (2) The application shall include: (i) The applicant’s corporate name, business address, and any trade names under which the applicant conducts business; (ii) The name and business address of each […]
Section 7-207 – Certificate of Authority — Approval
(a) When an applicant for a certificate of authority files the application and pays the application fee required under § 7-206 of this subtitle, the Commissioner shall conduct an investigation to determine if the applicant meets the requirements of § 7-205 of this subtitle. (b) Unless the Commissioner notifies the applicant that a different time period is […]
Section 7-208 – Certificate of Authority — Denial; Request for Hearing
(a) If an application for a certificate of authority is denied, the notification of the denial shall: (1) Be in writing; and (2) State the applicant’s right to a hearing held in accordance with the Administrative Procedure Act. (b) An applicant who seeks a hearing on an application denial shall file a written request for a hearing within 30 […]
Section 7-209 – Certificate of Authority — Suspension or Revocation
(a) The Commissioner may suspend or revoke the certificate of authority of a credit union share guaranty corporation if the credit union share guaranty corporation or a director or officer of the credit union share guaranty corporation: (1) Makes a material misstatement in an application for a certificate of authority; (2) Is convicted under the laws of the […]
Section 7-210 – Examinations and Investigations
(a) (1) The Commissioner: (i) Shall examine the business of each credit union share guaranty corporation at least once every 24 months; and (ii) May examine the business of each credit union share guaranty corporation at any time that the Commissioner reasonably considers necessary. (2) The Commissioner may enter into agreements with third parties and delegate the authority to conduct […]
Section 7-211 – Payment of Expenses; Assessments
(a) A credit union share guaranty corporation shall pay all reasonable expenses for transportation, lodging, and meals associated with: (1) An examination required or permitted under § 7-210 of this subtitle; and (2) Any other examination or investigation conducted under this article that results in the discovery of a violation of this subtitle by the credit union share […]
Section 7-212 – Reports
(a) (1) On or before April 1 of each year, unless the Commissioner extends the time for good cause, each credit union share guaranty corporation shall file with the Commissioner an annual report for the immediately preceding calendar year. (2) The annual report shall include: (i) The annual financial statement of the credit union share guaranty corporation prepared in […]
Section 7-213 – Exchange of Information
(a) This section applies notwithstanding any other provision of law. (b) A credit union share guaranty corporation and the Commissioner may exchange information, including information obtained during an examination, about a participating credit union or a credit union that is applying for participation in the credit union share guaranty corporation. (c) The Commissioner may exchange information, including information […]
Section 7-214 – Contracts With Participating Credit Unions
(a) A credit union share guaranty corporation shall have a written contract with each participating credit union that clearly establishes the rights and obligations of the parties. (b) At least 30 days before the effective date of any material amendment to the standard written contract that is submitted under § 7-206(b) of this subtitle, the credit union […]
Section 7-215 – Notice to Commissioner
A credit union share guaranty corporation shall provide written notice to the Commissioner of: (1) The receipt from a credit union of an application for participation in the credit union share guaranty corporation; (2) The credit union share guaranty corporation’s underwriting decision regarding the application for participation; and (3) The voluntary or involuntary termination of the participation of […]
Section 7-216 – Guaranty Fund
(a) (1) Except as provided in paragraph (2) of this subsection, a credit union share guaranty corporation shall establish and maintain a guaranty fund of at least 1 percent of the aggregate shares and deposits of the participating credit unions. (2) A credit union share guaranty corporation that is domiciled outside the State may maintain a guaranty fund […]
Section 7-217 – Reserves for Guaranty Losses
(a) (1) A credit union share guaranty corporation shall establish reserves for guaranty losses on an incurred basis in accordance with generally accepted accounting principles during the period in which the losses become evident. (2) The reserves shall provide for: (i) Losses reported to the credit union share guaranty corporation; (ii) Losses incurred but not previously reported; and (iii) Estimated losses […]
Section 7-218 – Liquidation and Receivership
(a) The Commissioner shall give prompt notice to the applicable credit union share guaranty corporation whenever the Commissioner: (1) Takes possession of the property and assets of a participating credit union; and (2) Determines to liquidate the property and assets of a participating credit union. (b) Notwithstanding the provisions of §§ 5-605 and 6-905(d) of this article, the Commissioner […]
Section 7-219 – Termination of Participation
(a) A credit union share guaranty corporation may terminate the participation of a participating credit union for any of the following reasons: (1) The participating credit union fails to satisfy the risk eligibility standards established by the credit union share guaranty corporation and applicable to all participating credit unions; (2) The participating credit union operates in an unsafe […]
Section 7-220 – Violations; Penalty
A person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 5 years or both.
Section 7-221 – State Not Liable for Payment of Funds
Nothing in this subtitle creates any liability on the State for the payment of any funds to any participating credit union or other person by reason of: (1) An act or omission of a credit union share guaranty corporation; or (2) A deficiency of a participating credit union in the event a credit union share guaranty corporation […]