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§ 6-905. Corrective action ordered by Commissioner

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 9. Prohibited Activities; Penalties
MD Code, Financial Institutions, § 6-905
§ 6-905. Corrective action ordered by Commissioner
Currentness
Grounds for corrective action
(a) The Commissioner may order a credit union, or enter into an agreement with a credit union, to take corrective action if the Commissioner finds that the credit union:
(1) Has failed to file a report when due;
(2) Is insolvent;
(3) Has violated any provision of this title; or
(4) Is engaged in an unsafe or unauthorized practice.
Opportunity for hearing
(b)(1) Before the order becomes effective, the Commissioner shall give the credit union an opportunity for a hearing.
(2) Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article.
Immediate action to protect depositors or members
(c) If the Commissioner determines that the violation or 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 credit union an opportunity for a hearing to rescind the order.
Failure to comply with orders
(d) If the credit union fails to comply with the order within 60 days after it becomes effective, the Commissioner may:
(1) Take possession of the business and assets of the credit union and operate it until the Commissioner permits it to resume business or until the Commissioner orders its liquidation under item (3) of this subsection;
(2) Order the credit union share guaranty corporation that insures the credit union to take possession of the business and assets of the credit union and operate it in accordance with the Commissioner's instructions until the Commissioner permits it to resume business or until the Commissioner orders its liquidation under item (3) of this subsection; or
(3) Place the credit union in receivership for liquidation in the same manner as provided for a banking institution under Title 5, Subtitle 6 of this article.

Credits

Added as Financial Institutions § 6-307 by Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1986, c. 778; Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 6-905 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
Formerly Art. 11, § 141.
MD Code, Financial Institutions, § 6-905, MD FIN INST § 6-905
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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