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