BIRMINGHAM, Ala. (4/10/14)--Alabama Gov. Robert Bentley Monday signed into law House Bill 165, an update to the Alabama Credit Union Act.
"The Alabama Credit Union Act was a law that really needed to be updated," Patrick La Pine, president/CEO of the League of Southeast Credit Unions told News Now. "It will allow Alabama credit unions to operate more efficiently and effectively in today's changing regulatory environment. Our credit unions worked together to educate our lawmakers on the much needed changes. It's a good win for credit unions in the state."
Sens. Slade Blackwell (R-Mountain Brook) and Roger Bedford (D-Russellville) spearheaded the effort to pass HB 165 (News Now March 24).
Language in the new bill includes limited liability for boards and directors; new expulsion policy for members of credit unions; new penalties for fraudulent use of the term "credit union;" more protection for credit unions on accounts created by minors; and stronger liability protection to $10,000 from $5,000 on accounts of deceased members.
The update, which makes changes to an act that's largely been untouched since its introduction, governs all state-chartered credit unions.
The law is effective May 1. A signed copy is available on the Secretary of State's website, and the Alabama Credit Union Association is currently working with the governor's office to schedule a bill-signing ceremony.