Section 7-218 - Liquidation and receivership. - Maryland Statutes

§ 7-218. Liquidation and receivership.
 

(a)  Notice to guaranty corporation by Commissioner on taking possession of property and assets.- The Commissioner shall give prompt notice to the applicable credit union share guaranty corporation whenever the Commissioner: 

(1) Takes possession of the property and assets of a participating credit union; and 

(2) Determines to liquidate the property and assets of a participating credit union. 

(b)  Petition to appoint receiver.- Notwithstanding the provisions of §§ 5-605 and 6-905 (d) of this article, the Commissioner may petition a court of competent jurisdiction to appoint the applicable credit union share guaranty corporation as receiver of the participating credit union. 

(c)  Payment of deficiency.- When the property and business of a participating credit union has been liquidated or is in the process of liquidation and the proceeds of liquidation distributed are insufficient to pay the full guaranteed amount of each credit union share or deposit account, the credit union share guaranty corporation shall pay each deficiency up to the guaranteed amount within 30 days after the date the credit union share or deposit account balance is verified. 

(d)  Subrogation.- When any participating credit union share or deposit account is paid, the credit union share guaranty corporation shall be subrogated to all rights of the member or depositor, up to the amount paid by the credit union share guaranty corporation to the member or depositor. 
 

[2002, ch. 540.]