(a) 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) 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) 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) 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.
Structure Maryland Statutes
Title 7 - Credit Union Share Insurance
Subtitle 2 - Credit Union Share Guaranty Corporations
Section 7-203 - Certificate of Authority Required
Section 7-204 - Insuring Share and Deposit Accounts
Section 7-205 - Certificate of Authority -- Qualifications; Limitations
Section 7-206 - Certificate of Authority -- Applications
Section 7-207 - Certificate of Authority -- Approval
Section 7-208 - Certificate of Authority -- Denial; Request for Hearing
Section 7-209 - Certificate of Authority -- Suspension or Revocation
Section 7-210 - Examinations and Investigations
Section 7-211 - Payment of Expenses; Assessments
Section 7-213 - Exchange of Information
Section 7-214 - Contracts With Participating Credit Unions
Section 7-215 - Notice to Commissioner
Section 7-217 - Reserves for Guaranty Losses
Section 7-218 - Liquidation and Receivership
Section 7-219 - Termination of Participation
Section 7-220 - Violations; Penalty
Section 7-221 - State Not Liable for Payment of Funds
Section 7-222 - Insurance Article Not Applicable