(a) (1) Except as provided in paragraph (2) of this subsection, a credit union share guaranty corporation shall establish and maintain a guaranty fund of at least 1 percent of the aggregate shares and deposits of the participating credit unions. (2) A credit union share guaranty corporation that is domiciled outside the State may maintain a guaranty fund at the level permitted by its state of domicile if the credit union share guaranty corporation: (i) Has been domiciled in that state for at least 25 years immediately preceding the date of the credit union share guaranty corporation's completed application for a certificate of authority; (ii) Has engaged in the credit union share guaranty business for at least 25 years immediately preceding the date of the credit union share guaranty corporation's completed application for a certificate of authority; and (iii) The business of the credit union share guaranty corporation is subject to regulation by its state of domicile. (b) The guaranty fund shall be composed of the following: (1) The account for each participating credit union; (2) Retained earnings; and (3) Any reserves established under § 7-217 of this subtitle. (c) The amount of the account of each participating credit union shall be carried on the books of the participating credit union as an asset. (d) Notwithstanding any other provision of this subtitle, a credit union share guaranty corporation may require a participating credit union to make additional capital contributions to maintain the normal operating level during any calendar year in which the fund has been reduced below the minimum operating level as a result of payment of any deficiencies in credit union share accounts. (e) Within 60 days of the assessment, a credit union share guaranty corporation shall file with the Commissioner a report of each capital contribution that the credit union share guaranty corporation requires under subsection (d) of this section. (f) (1) If a participating credit union fails to pay an annual capital contribution, premium, fee, or assessment when due, the credit union share guaranty corporation: (i) Within 10 days after the failure, shall report the failure in writing to the Commissioner; and (ii) After 30 days' notice, may revoke the participating credit union's participation in the credit union share guaranty corporation, unless good cause is shown for the failure. (2) The 30-day notice of revocation required under paragraph (1)(ii) of this subsection does not apply to the revocation of excess coverage. (g) (1) Subject to the provisions of paragraph (2) of this subsection, a credit union share guaranty corporation shall refund to a participating credit union an amount equal to the balance of the participating credit union's capital contribution account, less any outstanding debts owed to the credit union share guaranty corporation, if the participating credit union: (i) Voluntarily dissolves; (ii) Obtains primary share guaranty insurance from the National Credit Union Administration Share Insurance Program or another credit union share guaranty corporation regulated under this subtitle; or (iii) Merges or consolidates with another credit union that results in the share and deposit accounts of the surviving or new credit union being insured by the National Credit Union Administration Share Insurance Program or another credit union share guaranty corporation regulated under this subtitle. (2) A credit union share guaranty corporation shall make a refund under paragraph (1) of this subsection only if the guaranty fund equals or exceeds the guaranty fund's normal operating level as calculated without the account of the exiting credit union. (h) If two or more participating credit unions merge or consolidate and the surviving or new credit union is to be insured by the credit union share guaranty corporation, the funds in the capital contribution account of each credit union shall be transferred to the account of the surviving or new credit union, less any outstanding debts owed to the credit union share guaranty corporation. (i) If a credit union share guaranty corporation is dissolved, the net assets after paying all liabilities and all costs of dissolution shall be distributed to the participating credit unions in accordance with their share and deposit balances, less any outstanding debts owed to the credit union share guaranty corporation.
‹ 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.