Removing Barriers Blog

CU Act Improvements on the Move in Indiana and Alabama
Posted March 25, 2016 by CUNA Advocacy

Earlier this week, the first update to a state credit union act became law in Indiana.  Before this bill’s enactment, Indiana restricted how loans could be made to officers of state chartered credit unions, including a limit on how much money an officer could borrow. The League-supported bill, S 242, amended Indiana law to reflect an inflation-adjusted loan limit.

Joining updates in Florida, Virginia, and Wisconsin, an update to the Alabama Credit Union Act was sent to the governor yesterday. The measure, S 209, seeks to improve the operating environment of state chartered credit unions and increase efficiency for day-to-day activities. Some of the changes include new investment language providing parity with federally chartered credit unions, new parity language for products and services, allowing credit committees to be appointed rather than elected, increased membership protection during voluntary dissolutions, and increased confidentiality provisions to better protect credit unions and members.