Except for a credit union or an out–of–state credit union authorized to do business in this State, a person may not: Use or advertise any name or title that contains the words “credit union” or any derivation of that term; Represent itself as a credit union; Conduct business as a credit union; or Conduct business under a name or title that: Indicates or reasonably implies that the person engages in or transacts the type of business conducted by a credit union; or Is calculated to lead a person to believe that the business engaged in or transacted is the type of business conducted by a credit union. Any person who violates any provision of this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both per occurrence. This section does not apply to an association or league of credit unions, whether or not the association or league is incorporated.

A person may not willfully make, circulate, or send to another person any untrue statement that is derogatory to the financial condition or that affects the solvency or financial standing of any credit union doing business in the State, or counsel, aid, procure, or induce another to make, circulate, or send to another person such a statement. A person that violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 3 years or both.

An officer, official, or employee of a credit union may not willfully and knowingly make or cause to be made a false statement or false entry in the records of the credit union or, with the intent to deceive a person authorized to examine the affairs of the credit union, sign or exhibit false records. An officer, official, or employee who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.

An officer or official who in any way knowingly permits or participates in making a loan in violation of § 6-611 of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years or both, per occurrence. If a loan is made in violation of § 6-611 of this title, the credit union may recover the amount of the loan from: Any borrower; or Any officer or official who knowingly permitted or participated in making the loan.

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: Has failed to file a report when due; Is insolvent; Has violated any provision of this title; or Is engaged in an unsafe or unauthorized practice. Before the order becomes effective, the Commissioner shall give the credit union an opportunity for a hearing. Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article. 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: May issue a cease and desist order that is effective on service; and Shall give the credit union an opportunity for a hearing to rescind the order. If the credit union fails to comply with the order within 60 days after it becomes effective, the Commissioner may: 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; 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 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.

The Commissioner shall order any credit union to cease and desist from: An unsafe or unsound practice; A practice that is injurious to the public interest; or A violation of laws or rules or regulations that relate to the Commissioner’s supervision of the credit union. To protect depositors or members, the Commissioner may include in a cease and desist order a restriction on the withdrawal of money from any credit union. The Commissioner may include in a cease and desist order a requirement that the officers or officials act affirmatively to correct any violation or practice. Before a cease and desist order takes effect, the Commissioner shall give the credit union an opportunity for a hearing. Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article. 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: May issue a cease and desist order that is effective on service; and Shall give the credit union an opportunity for a hearing to rescind the order.

After notice and a hearing, the Commissioner may assess a civil penalty against a credit union that the Commissioner determines has: Violated a cease and desist order issued by the Commissioner under § 6–906 of this subtitle; or Engaged in: An unsafe or unsound practice; or A practice that is injurious to the public interest. The civil penalty may not exceed: $1,000 per violation; and $1,000 per violation for each day that the violation continues. A civil penalty shall be assessed by written notice of assessment served on the person to be assessed. The notice of assessment shall state the: Amount of the civil penalty; Legal authority for the assessment; and Matters of fact or law constituting the grounds for the assessment. The notice of assessment shall constitute a final order for purposes of judicial review pursuant to § 10–221 of the State Government Article. In determining the amount of the civil penalty to be assessed, the Commissioner shall consider: The seriousness of the violation; The good faith of the violator; The violator’s history of previous violations; The deleterious effect of the violation on the public and the credit union industry; The assets of the violator; and Any other factors relevant to the determination of the civil penalty. A civil penalty assessed under this section shall be due and payable within 30 days after the Commissioner issues the notice of assessment. The Commissioner may reduce or set aside a civil penalty. The Commissioner shall pay all civil penalties collected under this section into the General Fund of the State.

In this section, “extraordinary circumstances” means a situation presenting specific concerns about the prompt withdrawal of money from, or the safety and soundness of, a credit union. In extraordinary circumstances and with the consent of the credit union, the Commissioner may close to the public a hearing concerning the assessment of a civil penalty, an order to cease and desist, or any other formal enforcement action by the Commissioner.

If the Commissioner believes that an officer or official has engaged in an unsafe or unsound practice, the Commissioner shall send a warning to the officer or official. If the Commissioner finds that the officer or official has continued to engage in the unsafe or unsound practice, the Commissioner may report the facts to the Secretary of Labor and the Attorney General. A copy of the report shall be sent by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to each director of the credit union. If the Commissioner finds that the unsafe or unsound practice continues after the warning and the officer, official, agent, or employee was provided an opportunity to be heard, the Commissioner may remove the officer, official, agent, or employee with the approval of the Secretary of Labor. Notice of the hearing shall be given and the hearing shall be held in accordance with Title 10 of the State Government Article. A copy of the removal order shall be served on the individual removed and the credit union. If the Commissioner determines that the unsafe or unsound practice under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner: May issue a cease and desist order that is effective on service; and Shall give the officer or official an opportunity for a hearing to rescind the order.

If the Commissioner believes that any officer, official, agent, or employee of a credit union has violated any provision of this title, the Commissioner may report the violation directly to the Secretary of Labor and to the Attorney General who shall take the appropriate steps to institute a prosecution for the violation. The Commissioner shall send a written warning to an officer, official, agent, or employee of a credit union who the Commissioner believes has violated any provision of this title. If after a warning the violation continues, the officer, official, agent, or employee may be removed as provided in § 6–907(b) of this subtitle. Unless otherwise specified, any officer, official, agent, or employee of a credit union who violates the provisions of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $3,000 or imprisonment not exceeding 5 years. If the Commissioner determines that the violation under subsection (a) of this section requires immediate action to protect depositors or members, the Commissioner: May issue a cease and desist order that is effective on service; and Shall give the officer, official, agent, or employee an opportunity for a hearing to rescind the order.