BIRMINGHAM, Ala. (3/24/14)--Score a major win for Alabama credit unions, as a bill that will clean up and modernize the Alabama Credit Union Act got the green light from the state Senate last week.
It now only needs a signature from Gov. Robert Bentley for ratification.
"This much needed update to the Alabama Credit Union Act will benefit credit union members as soon as it is signed by the governor," said Patrick La Pine, president/CEO of the League of Southeastern Credit Unions (eSignal March 21). "Credit unions thank Alabama legislative leadership for seeing the value in updating the act."
Sens. Slade Blackwell (R-Mountain Brook) and Roger Bedford (D-Russellville) spearheaded the effort to pass House Bill 165.
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.