In this subtitle, “mutual association” means an association that: (1) Is a corporation chartered under the laws of the State as a savings and loan association that does not have the authority to issue capital stock; (2) Is insured by the State of Maryland Deposit Insurance Corporation; and (3) Has assets of $15,000,000 or less or had total […]
A mutual association may convert to a credit union if: (1) Its members approve; and (2) Approval is granted by: (i) The Division Director; and (ii) The Commissioner.
(a) If a mutual association wishes to convert to a credit union, the board of directors of the mutual association shall call a meeting of the members of the mutual association for the purpose of considering the proposal to convert. (b) The mutual association shall give notice of the meeting as provided in Title 2, Subtitle 5 […]
A proposed plan of conversion to a credit union shall be approved by a majority vote of the total number of votes eligible to be cast by the members of the mutual association.
(a) To convert to a credit union, the mutual association shall deliver to the Commissioner: (1) A written application for conversion in the form that the Maryland Department of Labor requires; (2) Any additional exhibits the Department may require; (3) Any filing fee set by the Department by regulation; and (4) Its proposed amended articles and bylaws. (b) Upon receipt of […]
(a) In reviewing an application for conversion, the Commissioner shall determine: (1) Whether, after conversion, the credit union will be in sound financial condition and will be soundly managed; and (2) That no person will receive any inequitable gain or advantage by reason of the conversion. (b) An application for conversion may only be approved if it is found […]
(a) On approval of the application for conversion, the applicant shall file an endorsed copy of the application with the State Department of Assessments and Taxation. (b) The mutual association becomes a credit union when the application and endorsed amended articles and bylaws by the State Department of Assessments and Taxation accepts the application for record. (c) The […]
(a) The Commissioner may require any changes to the application or exhibits that the Department considers necessary. (b) If the application for conversion is denied, the Commissioner shall endorse and date a copy of the application “denied”, return it to the mutual association, and certify this action to the State of Maryland Deposit Insurance Fund Corporation. (c) If […]
In addition to membership authorized in § 6-302 of this article, a credit union resulting from a conversion under this subtitle may permit individuals who, at the time of conversion, are members, savings account holders, directors, officers, employees, or borrowers of a mutual association, to become members of the resulting credit union.
