§ 6-331
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/md/financial-institutions/6-331A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§6–331.
(a)In this section, “compensation” means anything of value given to an official that is:
(1)In exchange for services performed as an official; and
(2)Reportable as income to the Internal Revenue Service or the Comptroller of the State.
(b)Each official is entitled to the compensation that:
(1)Subject to the provisions of subsection
(c)of this section, the members authorize; and
(2)Except as provided in subsection (d)(2) of this section, is approved by the Commissioner.
(1)All compensation to be paid under subsection
(b)of this section shall be authorized by a vote of the members at the annual meeting of the membership in accordance with § 6–317 of this subtitle.
(2)Written disclosure of the proposed compensation and each official’s expenses shall be made to all members in good standing not less than 30 days and not more than 90 days before the annual meeting of members.
(3)The written disclosure required under paragraph
(2)of this subsection shall contain at least the following information:
(i)The proposed dollar amount of compensation that will be paid to each official on a per meeting or other applicable basis;
(ii)The aggregate dollar amount of compensation paid to all officials for the 12 months immediately preceding the date of the notice of the annual meeting of members;
(iii)1. A reasonable estimate of the aggregate dollar amount of compensation to be paid to all officials for the following 12–month period assuming:
A. That the proposed compensation is approved; and
B. The same number of meetings as were held during the 12 months immediately preceding the date of the notice of the annual meeting of members; or
2. A statement that the compensation to be paid to all officials will remain the same as it was during the 12 months immediately preceding the date of the notice of the annual meeting of members; and
(iv)The aggregate dollar amount of all officials’ expenses, excluding compensation, for the 12 months immediately preceding the date of the notice of the annual meeting of members.
(i)The written disclosure shall be conspicuously set apart from other information provided to the members.
(ii)The written disclosure may be included in:
1. The notice of the annual meeting of the members;
2. A separate mailing;
3. A periodic statement of account; or
4. A periodic publication of the credit union.
(1)All requests for the Commissioner’s approval under subsection
(b)of this section shall:
(i)Be made in writing; and
(ii)Contain a certification by the president of the credit union that the compensation has been authorized by the membership in accordance with subsection
(c)of this section.
(2)The Commissioner’s approval is not required if the credit union:
(i)Was rated “1” or “2” as of the last examination conducted by the Commissioner; and
(ii)Has a positive net income as of the end of the previous calendar year.