(a) Any State credit union may convert into a federal credit union as provided by federal law and as provided in this section. (b) A majority of the board of a credit union proposing to convert shall: (1) Adopt a resolution that declares that the conversion is advisable; (2) Set a date for a vote on the proposed conversion by the members of the credit union at an annual or special meeting of the members or by mail ballot to be filed on or before that date; (3) Comply with federal law regarding conversion; and (4) File the required conversion application with the Commissioner. (c) The Commissioner, at the request of the board, may: (1) Waive the vote of the members; and (2) Substitute any reasonable method of determining the approval by the members. (d) Unless the Commissioner takes action under subsection (c) of this section, written notice of the proposed conversion and of the date set for the vote shall be delivered in person to each member or mailed to each member at the member's address as recorded by the credit union, not more than 30 days nor less than 7 days before the date set for the vote. (e) (1) Unless the Commissioner takes action under subsection (c) of this section, the proposed conversion shall be approved by the affirmative vote of a majority of the members who vote on the proposal. (2) Within 10 days after the vote, a statement of the results of the vote shall be filed with the Commissioner. The statement shall be verified by the chairman or vice chairman of the board and by the secretary of the credit union. (f) (1) Within 90 days after a proposed conversion is approved by the members, the credit union shall take any action necessary under federal law to make it a federal credit union. (2) Within 10 days after the credit union receives a federal credit union charter, a copy of that charter shall be filed with the Commissioner and, when the copy is filed, the credit union ceases to be a State credit union. (g) When the conversion from a State credit union to a federal credit union is complete: (1) The converted credit union is no longer subject to the provisions of this title; and (2) The successor federal credit union owns all the assets and is responsible for all the obligations of the former State credit union as though the conversion had not taken place.
‹ Prev All Maryland sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.