Title 6. Credit Unions — Subtitle 7. Miscellaneous Regulations

Participate in and have its member accounts insured under the National Credit Union Administration Share Insurance Program; or

Participate in and have its member accounts insured by a credit union share guaranty corporation that is approved by the Commissioner to at least the same extent and amount as provided by the National Credit Union Administration Share Insurance Program.

The Commissioner may examine any credit union share guaranty corporation that insures the member accounts of a credit union that is subject to this title.

The Commissioner may charge the reasonable cost of an examination conducted under paragraph (1) of this subsection to the credit union share guaranty corporation that is examined.

Each credit union shall have a reserve fund to meet losses on loans and to meet other contingencies that the Commissioner specifies.

The reserve fund may be distributed to the members of the credit union only on dissolution of the credit union.

After paying organization expenses, each credit union shall credit to its reserve fund all entrance fees, transfer fees, and fines.

A credit union in operation for 4 years or more and having assets of $500,000 or more shall credit to the reserve fund, at the end of each accounting period:

A credit union in operation for less than 4 years or having assets of less than $500,000 shall credit to the reserve fund, at the end of each accounting period:

On recommendation of the board, the amount credited to the reserve fund may be increased.

Individually classified loans; and

The historical reserve needs of the credit union.

General obligations of or obligations guaranteed by the United States;

Deposits, loans, shares, or stock of any federal reserve bank, federal home loan bank, or any central liquidity facility established under state or federal law;

Securities, obligations, or other instruments of or issued by or fully guaranteed as to principal and interest by the federal government or a unit of the federal government;

General obligations of a state or a federal territory or political subdivision, provided that the general obligation is rated in one of the three highest rating categories of a nationally recognized statistical rating organization as determined by the Commissioner;

Deposits or federal funds of any financial institution that has federal deposit insurance;

Shares or deposits of other credit unions;

Mutual funds that invest solely in investments permissible for direct investment by the credit union;

Repurchase transactions secured by investments permissible for direct investment by the credit union; or

Any other investment that the Commissioner approves.

Subject to the provisions of paragraph (2) of this subsection, in addition to the investments authorized under subsection (a) of this section, a credit union may request authority from the Commissioner to make other investments, including investments authorized under the federal Credit Union Act or regulations of the National Credit Union Administration, on an ongoing basis.

To obtain the Commissioner’s approval for additional investment authority under paragraph (1) of this subsection, a credit union shall submit to the Commissioner an investment policy.

With the prior approval of the Commissioner, as required under subsection (b) of this section, a credit union may organize a credit union service organization.

A credit union that proposes to organize a credit union service organization shall:

In deciding whether to approve the organization of a credit union service organization, the Commissioner shall consider whether:

Unless the Commissioner notifies the credit union that a different time period is necessary, within 60 days of receipt of the notice specified in paragraph (2) of this subsection, the Commissioner shall notify the credit union of the determination on the approval of the organization of a credit union service organization.

Subject to the provisions of this subsection, a credit union may invest in and make loans to a credit union service organization.

If an investment or loan by a credit union to a credit union service organization causes the aggregate of the credit union’s investments or loans to exceed 2% of the credit union’s total assets, the credit union shall:

A credit union that proposes to make any investment in or loan to the credit union service organization that exceeds the limit under paragraph (2) of this subsection shall:

In deciding whether to approve the investment or loan, the Commissioner shall consider whether:

Unless the Commissioner notifies the credit union that a different time period is necessary, within 60 days of receipt of the notice specified in paragraph (2) of this subsection, the Commissioner shall notify the credit union of the determination on the approval of the investment or loan.

Access to the books and records of a credit union service organization; and

Authority to review the internal controls of a credit union service organization.

In addition to any other investment authorized under this subtitle, a credit union may purchase, construct, or acquire and hold, either individually or jointly with another credit union, fixed assets for the purpose of providing adequate facilities for the transaction of present and future business.

A credit union may use fixed assets acquired under this section for:

A credit union may rent excess space in a fixed asset acquired under this section as a source of income.

A credit union’s investment in fixed assets acquired under this section:

Subject to the provisions of paragraph (2) of this subsection, a credit union may borrow money for the purchase of fixed assets.

The term of the loan may not exceed:

Two times the net worth of the borrowing credit union; or

10% of the total assets of the borrowing credit union.

On any State holiday; and

At any other time if:

In this section the following words have the meanings indicated.

“Branch” means a deposit–taking office of a credit union in the State that is open to the public as of December 31 of the calendar year preceding the request for an assessment offset credit.

“De novo branch” means a deposit–taking office of a credit union in the State that was opened to the public for the first time during the calendar year immediately preceding a request for an assessment offset credit that:

“Deposits” means deposits originated and housed at a credit union branch located in a low– to moderate–income tract as reported by a credit union to the Commissioner each year as of December 31.

“Low– to moderate–income tract” has the meaning stated in § 5–203 of this article.

“Maryland Opportunity Account” means a transaction account offered by a credit union to its members that meets standards annually determined by the Commissioner that promote fair and equal access to financial services.

The Commissioner shall impose an annual assessment on each credit union as provided in this subsection to cover the expense of regulating credit unions.

The Commissioner shall assess each credit union the sum of:

The assessment shall be based on assets stated in the credit union’s most recent financial report.

A well–capitalized credit union with a composite CAMELS rating of 1 or 2 may file with the Commissioner a request for an assessment offset credit of:

In addition to an assessment offset credit under paragraph (4) of this subsection, a well–capitalized credit union with a composite CAMELS rating of 1, 2, or 3 may file with the Commissioner a request for an assessment credit of:

Notifies the Commissioner in writing of the location of the books and records; and

Makes the books and records available at the credit union’s principal place of business, as agreed by the Commissioner and the credit union, within 7 days of a written request for examination by the Commissioner.

Original form;

An electronic equivalent approved by the Commissioner; or

A microphotographic copy approved by the Commissioner.