Removing Barriers Blog

LSCU Secures CU Act Modernization in Alabama
Posted April 13, 2016 by CUNA Advocacy

The League of Southeastern Credit Union (LSCU) secured the enaction of a major credit union act recodification bill, S 209, in Alabama. The legislation is expected to increase the efficiency and effectiveness of Alabama’s state chartered credit unions. Some of the provisions of the legislation include:

  • Modernizing the current investment language for state charters to permit them to invest in anything that is legal for banks;
  • Modernizing the selection process and role of the credit committee of a credit union;
  • Increasing protections of members of a credit union in the case of a voluntary merger; and
  • Increasing the confidentiality of credit union documents and records.

The measure also includes additional wild card language that grants state chartered CUs parity with federal credit unions and additional powers as approved by the state regulator. LSCU helped pave the way for this victory by convening a working group to identify needed updates, and by working closely with the regulator to garner support for the legislation.