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§ 6-314. Liens and rights to setoff on shares and deposits of members

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 3. Formation, Organization, and Powers (Refs & Annos)
Part II. Powers of a Credit Union
MD Code, Financial Institutions, § 6-314
§ 6-314. Liens and rights to setoff on shares and deposits of members
Currentness
In general
(a) Without being required to take any action to perfect a lien, a credit union has a lien and a right to a setoff on the shares and deposits of a member in any individual, multiple party, or other type of account, including any dividends or interest payable on those shares or deposits, to the extent of any delinquency or default of the member on:
(1) Any outstanding loan, whether or not matured, on which the member is liable to the credit union as maker, comaker, surety, or endorser; and
(2) Any dues, charges, fees, fines, or other amount payable by the member.
Resignation or expulsion of member
(b) If a member resigns or is expelled, the credit union may cancel that member's shares and apply their withdrawal value against any amount owed to the credit union by the member.
Withdrawal of member’s shares or deposits
(c) A credit union may allow a withdrawal of a member's shares or deposits without affecting the credit union's lien or right to a setoff.
Refusal to allow withdrawals
(d) A credit union may refuse to allow a withdrawal of a member's shares or deposits to the extent of any delinquency or default of the member to the credit union.

Credits

Added as Financial Institutions § 6-209 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1986, c. 835, § 1, eff. July 1, 1986; Acts 1992, c. 578. Renumbered as Financial Institutions § 6-314 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
MD Code, Financial Institutions, § 6-314, MD FIN INST § 6-314
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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