(a) To convert to a credit union, the mutual association shall deliver to the Commissioner:
(1) A written application for conversion in the form that the Maryland Department of Labor requires;
(2) Any additional exhibits the Department may require;
(3) Any filing fee set by the Department by regulation; and
(4) Its proposed amended articles and bylaws.
(b) Upon receipt of an application to convert, the Commissioner shall examine the mutual association.
(c) The examination shall include, but not be limited to, the following:
(1) The financial history and condition of the mutual association including:
(i) The identification of overvalued assets, undisclosed nonperforming loans, and understated liabilities;
(ii) The identification of assets that may become nonperforming assets upon conversion;
(iii) The identification of loans in default and loans past due over 60 days;
(iv) Review of material litigation affecting the mutual association, and the identification of significant judgments, orders or decrees affecting its financial status; and
(v) Review of mortgage contracts, participating loans, and other commitments.
(2) The management of the association.
(d) As a condition of approval of an application of conversion, the Commissioner may require a mutual association to have its books and records audited and certified under § 9–502 of this title.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal insurance products you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with access to legal services through a network of provider law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our provider law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your provider law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal insurance products, and access to the LegalFix network of provider law firms are subject to the LegalFix Terms of Service and Privacy Policy.
