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§ 6-401. Supervisory committee

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 4. Examinations and Reports (Refs & Annos)
MD Code, Financial Institutions, § 6-401
§ 6-401. Supervisory committee
Currentness
In general
(a) Each credit union shall have a supervisory committee.
Members of supervisory committee appointed by board
(b) The board shall appoint the members of the supervisory committee at:
(1) The first meeting of the board following the annual meeting of the members; and
(2) Any time there is a vacancy.
Number of members
(c)(1) Subject to the provisions of paragraph (2) of this subsection, the board shall determine the number of members on the supervisory committee.
(2) The supervisory committee shall have at least three and not more than seven members.
Composition of committee
(d)(1) Each member of the supervisory committee shall be appointed from among the members of the credit union.
(2) Not more than one member of the supervisory committee may be a director.
(3) An officer of the credit union, a member of the credit committee, or an employee of the credit union may not be a member of the supervisory committee.
(4) At least one member of the supervisory committee shall have experience in:
(i) Accounting;
(ii) Auditing; or
(iii) General business.
(5) Each member of the supervisory committee:
(i) Shall be bonded;
(ii) May not have been convicted of any criminal offense involving dishonesty or breach of trust;
(iii) May not have habitually neglected to pay any debts;
(iv) May not become insolvent or bankrupt while serving on the supervisory committee; and
(v) May not have been removed by the Commissioner or any state or federal regulatory agency as an officer, official, or employee of a financial institution.
Election of chair
(e) The members of the supervisory committee shall elect the chairman of the supervisory committee:
(1) At the beginning of each term of appointment to the committee; and
(2) At any time there is a vacancy and the board is notified.
Term
(f) A member of the supervisory committee serves for 1 year and until a successor is appointed and qualifies.
Oath
(g) Each member of the supervisory committee shall take an oath to perform faithfully the duties of the office.
Appropriation of funds
(h)(1) The board shall appropriate funds:
(i) For an audit conducted by an outside auditor; and
(ii) If required, for an internal auditing function.
(2) The supervisory committee has the sole authority to engage or terminate outside and internal auditors.

Credits

Added as Financial Institutions § 6-301 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Renumbered as Financial Institutions § 6-401 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001. Amended by Acts 2002, c. 540, § 1, eff. July 1, 2002.
Formerly Art. 11, § 147; Added by Acts 1980, c. 33, § 2, eff. July 1, 1980.
MD Code, Financial Institutions, § 6-401, MD FIN INST § 6-401
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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