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§ 6-907. Unsafe or unsound practices

West's Annotated Code of MarylandFinancial InstitutionsEffective: July 1, 2019

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 9. Prohibited Activities; Penalties
Effective: July 1, 2019
MD Code, Financial Institutions, § 6-907
§ 6-907. Unsafe or unsound practices
Currentness
Warning from Commissioner
(a)(1) If the Commissioner believes that an officer or official has engaged in an unsafe or unsound practice, the Commissioner shall send a warning to the officer or official.
(2) If the Commissioner finds that the officer or official has continued to engage in the unsafe or unsound practice, the Commissioner may report the facts to the Secretary of Labor and the Attorney General.
(3) A copy of the report shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to each director of the credit union.
Removal of officer, official, agent, or employee
(b)(1) If the Commissioner finds that the unsafe or unsound practice continues after the warning and the officer, official, agent, or employee was provided an opportunity to be heard, the Commissioner may remove the officer, official, agent, or employee with the approval of the Secretary of Labor.
(2) Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.
Service of removal order
(c) A copy of the removal order shall be served on the individual removed and the credit union.
Immediate action to protect depositors or members
(d) If the Commissioner determines that the unsafe or unsound practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner:
(1) May issue a cease and desist order that is effective on service; and
(2) Shall give the officer or official an opportunity for a hearing to rescind the order.

Credits

Added as Financial Institutions § 6-307.2 by Acts 1986, c. 835, § 1, eff. July 1, 1986. Amended by Acts 1995, c. 120, § 19, eff. July 1, 1995; Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 6-907 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001. Amended by Acts 2019, c. 8, § 5.
MD Code, Financial Institutions, § 6-907, MD FIN INST § 6-907
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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