S.B. 126

VETOES

FOR the purpose of altering the manner in which the conversion of a State credit union
to a federal credit union is approved by members of the credit union; authorizing
the Bank Commissioner to waive a certan certain requirement under certain
circumstances; and making stylistic changes; and generally relating to the conversion
of State credit unions into federal credit unions.

BY repealing and reenacting, with amendments,                                 

Article - Financial Institutions
Section 6-701

Annotated Code of Maryland
(1992 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

6-701.

(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 directors of a credit union proposing to convert
shall:

(1)     Adopt a resolution that declares THAT the conversion [to be] IS
advisable; and

(2)     Set a date for a vote on the proposed conversion by the members of the
credit union, either at a meeting to be held on that date or by [written] MAIL ballot to
be filed on or before that date.

(c)     THE BANK COMMISSIONER, AT THE REQUEST OF THE BOARD OF
DIRECTORS OF A CREDIT UNION, MAY WAIVE THE REQUIREMENT FOR A MAIL
BALLOT AND MAY SUBSTITUTE ANY REASONABLE METHOD OF DETERMINING THE
VOTE OF THE MEMBERS.

(D) 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.

(d)    (E) (1) The proposed conversion shall be approved by the affirmative[,
written] vote of a majority of the [entire membership] MEMBERS of the credit union
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 Bank Commissioner. The statement shall be verified by the president or
vice-president and by the secretary of the credit union.

(e) (F) (1) Within 90 days after a proposed conversion is approved, the credit
union shall take any action necessary under federal law to make it a federal credit union.

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