Removing Barriers Blog

Credit Union Bills Await Governor Signatures in Florida, Indiana and Virginia – March 10, 2016
Posted March 10, 2016 by CUNA Advocacy

Midway through the 2016 session, leagues in Florida, Indiana and Virginia are on the cusp of legislative victories as bills benefitting credit unions and their members are on the governors’ desks for signature.

The League of Southeastern Credit Unions has two bills awaiting the governor’s signature in Florida. One bill, S 1104, will prevent confusion and process service delays by allowing credit unions to register a central location and person to be served with any lawsuits. Currently under Florida law, financial institutions do not have a central location registered for the process service of lawsuits.

The other, H 1233, would grant Florida credit unions access to the Federal Home Loan Bank of Atlanta’s (FHLBank) mortgage purchasing program. The program permits member credit unions and banks to sell mortgages into the secondary market in a more efficient and cost-effective way. A requirement of the program is that the regulator shares the institution's CAMEL score with the FHLBank. Due to their interpretation of a 1992 statute, the Florida regulator does not share this information. If signed, the regulator could share an institution’s CAMEL score, thus granting state-chartered credit unions access to the program.  

Currently, Indiana law places restrictions on how loans can be made to individual officers of state-chartered credit unions, including an aggregate limit on how much money an officer can borrow from the credit union. A bill pushed by the Indiana Credit Union League, S 242, would change Indiana law to reflect the inflation-adjusted loan limit.

In Virginia, H 874 is on the governor’s desk as well. The bill would authorize the state regulator to give credit unions greater field of membership flexibility and the ability to merge. Currently, Virginia state-chartered credit unions are limited to serving either a single group with a common bond, multiple groups of no more than 3,000 people, or a single community.  While Virginia law 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, credit unions cannot merge before conditions deteriorate.