{"data":{"id":"us-md/md.-code-financial-institutions-6-609","jurisdiction":"us-md","citation":"Md. Code, Financial Institutions § 6–609","heading":"","body":"(a) (1) In this section the following words have the meanings indicated.\n(2) “Eligible obligation” means a loan or a group of loans made to a member of a credit union by a lender other than the credit union to which the member belongs.\n(3) “Student loan” means a loan that is:\n(i) Granted to finance the borrower’s attendance at an institution of higher education or at a vocational school; and\n(ii) Secured by, and on which payment of the outstanding principal and interest has been deferred in accordance with, the insurance or guarantee of the federal government, a state government, or a unit of the federal government or of a state government.\n(b) (1) Subject to the provisions of paragraph (2) of this subsection, a credit union may purchase, in whole or in part, in accordance with the board’s purchase policies:\n(i) Eligible obligations of its members;\n(ii) Eligible obligations of the individual members of a liquidating credit union, from the liquidating credit union;\n(iii) Student loans if the credit union is granting student loans on an ongoing basis and if the purchase will facilitate the credit union’s packaging of a pool of the loans to be sold or pledged on the secondary market; and\n(iv) Real estate loans if the credit union is granting real estate loans under this subtitle on an ongoing basis and if the purchase will facilitate the credit union’s packaging of a pool of the loans to be sold or pledged on the secondary mortgage market.\n(2) A credit union may make a purchase under paragraph (1) of this subsection if:\n(i) The board or investment committee approves the purchase;\n(ii) A written agreement and a schedule of the eligible obligations covered by the agreement are retained by the credit union for inspection;\n(iii) The aggregate of the unpaid balance of eligible obligations purchased under paragraph (1)(i) and (ii) of this subsection does not exceed 5% of the total assets of the credit union; and\n(iv) For purchases of real estate loans under paragraph (1)(iv) of this subsection, the pool of loans to be sold or pledged on the secondary mortgage market:\n1. Includes a substantial portion of the credit union’s members’ real estate loans, but no less than 20% of the aggregate principal amount of the loans purchased; and\n2. Is sold promptly, but no later than 6 months after the purchase.\n(c) A credit union may sell or pledge, in whole or in part, the eligible obligations or loans purchased under subsection (b)(1) of this section if:\n(1) The board or investment committee approves the sale or pledge; and\n(2) The written agreement covering the sale or pledge and a schedule of the eligible obligations or loans covered by the agreement are retained by the credit union for inspection.\n(d) A credit union may agree to service any eligible obligation the credit union purchases or sells in whole or in part.","path":["Article - Financial Institutions"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gfi\u0026section=6-609","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:58:27Z","sha256":"c4413eb3a5e2ab5669e06617b784ee39eddb48dd61e97c8f45306ee6e24b409b","source_id":"us-md","stale":false,"prev":"us-md/md.-code-financial-institutions-6-608","next":"us-md/md.-code-financial-institutions-6-610"},"notice":"GroundRules: Original legal text. Not legal advice."}