Removing Barriers Blog

CUs Get New Powers in Florida and Virginia
Posted March 29, 2016 by CUNA Advocacy

Late last week, Florida Governor, Rick Scott signed legislation, H 1233, that opens the door for state chartered credit unions to join the Federal Home Loan Bank (FHLBank) of Atlanta's secondary market mortgage program. The league supported bill requires the state regulator to enter into an information sharing agreement with the FHLBank of Atlanta. Previously, state chartered credit unions were unable to join the program due to the regulator’s refusal to share examination reports with the FHLBank.

Yesterday, the Virginia League was successful in enacting legislation, H 874, which gives state chartered credit unions more flexibility when pursuing merger opportunities. The law permits two state-chartered credit unions with unlike charters to merge provided one of the credit unions serves 35,000 or less members. The continuing credit union would hold both charters, allowing it to serve the fields of membership each credit union held prior to the merger. While Virginia law already permits state-chartered credit unions to merge if there is an emergency, such as when one of the credit unions is on the brink of insolvency, the change allows those credit unions to merge before conditions deteriorate.