§ 6-804
379 words·~2 min read·
/md/financial-institutions/6-804A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§6–804.
(a)Any credit union may dissolve voluntarily, if the board, the members of the credit union, and the Commissioner approve the dissolution as provided in this section.
(b)A majority of the board of a credit union proposing to dissolve shall adopt a resolution that:
(1)Recommends that the credit union be dissolved voluntarily; and
(2)Directs that a proposal of dissolution be submitted to the members.
(1)A proposed dissolution shall be approved at an annual or special meeting of the members or by mail ballot by the affirmative vote of two-thirds of the entire membership of the credit union.
(2)The Commissioner may substitute any reasonable method of determining the vote of the members.
(d)After a proposed dissolution is approved by the members, the credit union shall file with the Commissioner:
(1)A copy of the resolution of the board recommending voluntary dissolution, attested to by:
(i)The chairman or vice chairman of the board; and
(ii)The secretary or treasurer of the credit union;
(2)A verified statement of the names and addresses of the officers and directors of the credit union; and
(3)The vote by which the voluntary dissolution was approved by the members.
(1)If the Commissioner finds that the credit union is solvent, the Commissioner shall issue to the credit union duplicate certificates stating that the credit union appears to have complied with this section.
(2)The credit union shall file one of the certificates with the State Department of Assessments and Taxation.
(f)When the certificate is filed with the State Department of Assessments and Taxation, the credit union is dissolved.
(1)On dissolution, a credit union may operate only to wind up its business and affairs.
(2)Under the direction of the Commissioner, the liquidating agent of the dissolved credit union, appointed by the board, shall:
(i)Discharge its debts and obligations;
(ii)Collect and distribute its assets; and
(iii)Do anything else necessary to wind up its business and affairs.
(3)For 3 years after the dissolution becomes effective, the credit union, acting by its board and liquidating agent:
(i)Shall continue in existence for the purpose of winding up its business and affairs; and
(ii)May sue and be sued in its name.