CA bill updating, modernizing charter moves forward
Aug. 16, 2016 -- Legislation updating and modernizing the state credit union charter -- giving California credit unions more flexibility – has moved another step forward in the state assembly.
The legislation -- AB 2274 (supported by the California Credit Union League, CCUL) – was passed unanimously by the state senate Monday evening, 38-0. Among other things, the legislation would:
- Allow member business loans to exceed a member's deposits;
- Eliminate board approval of membership applications;
- Authorize an audit committee in lieu of a supervisory committee;
- Permit non-members to act as the co-borrower, surety, or guarantor of a loan made to a member;
- Redefine which credit union officials' loans are subject to certain limitations and are required to be reviewed by the board;
- Empower credit unions to decide whether their boards need to meet on a monthly basis, or if they should opt to meet less often based on the needs of the credit union;
- Remove unnecessary loan documentation requirements.
According to the CCUL, the bill will next be heard on the California State Assembly Floor before heading to the Governor for a signature.