Removing Barriers Blog

Changes to Credit Union Acts Sought in Alabama, Illinois, Maine and Tennessee
Posted February 03, 2017 by CUNA Advocacy

Lawmakers in Alabama, Illinois, Maine and Tennessee are considering measures that would alter some credit union restrictions and operational requirements.

Currently in Alabama, state chartered credit unions must be examined annually. If S 27 is enacted, the examination period will be extended to 18 months. 

Reducing the frequency of examinations would remove some unnecessary pressure on credit union resources and permit credit unions to allocate those resources to better serve members. 

The Illinois bill, H 1792, would improve credit union operations and services by permitting credit union members to vote electronically, increasing the limit on loans to members, expanding the ability of credit unions to market their products and services and allowing credit unions to invest in corporate bonds and loan pools. 

On the heels of the legalization of recreational marijuana in Maine, legislation was introduced that would permit state-chartered credit unions to obtain private insurance in lieu of NCUA share insurance. With S 130, the bill’s author is seeking to facilitate credit union service to the marijuana industry by removing the federal regulator and the threat of losing share insurance.

In Tennessee, if H 150 becomes law, the amount that a credit union can pay out from a deceased member’s account or safe deposit box will increase to $15,000 from $10,000. The change would give credit unions greater flexibility to assist the families of deceased members.