(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.
Examination of mutual association
(b) Upon receipt of an application to convert, the Commissioner shall examine the mutual association.
Scope of examination
(c) The examination shall include, but not be limited to, the following:
(1) The financial history and condition of the mutual association including:
(i) The identification of overvalued assets, undisclosed nonperforming loans, and understated liabilities;
(ii) The identification of assets that may become nonperforming assets upon conversion;
(iii) The identification of loans in default and loans past due over 60 days;
(iv) Review of material litigation affecting the mutual association, and the identification of significant judgments, orders or decrees affecting its financial status; and
(v) Review of mortgage contracts, participating loans, and other commitments; and
(2) The management of the association.
Audit and certification of books and records
(d) As a condition of approval of an application of conversion, the Commissioner may require a mutual association to have its books and records audited and certified under § 9-502 of this title.
Credits
Added by Acts 1988, c. 635, § 1, eff. June 1, 1988. Amended by Acts 1992, c. 22, § 1; Acts 1995, c. 120, § 19, eff. July 1, 1995; Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 2019, c. 8, § 5; Acts 2021, c. 109, § 1, eff. April 13, 2021.
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.
