Section 9-1105 - Application to convert; examination; audit. - Maryland Statutes

§ 9-1105. Application to convert; examination; audit.
 

(a)  Application to convert.- 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 Department of Labor, Licensing, and Regulation 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)  Examination required.- Upon receipt of an application to convert, the Commissioner shall examine the mutual association. 

(c)  Scope of examination.- 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)  Audit as condition of approval.- 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. 
 

[1988, ch. 635; 1992, ch. 22, § 1; 1995, ch. 120, § 19; 1996, ch. 326, § 2.]