RICHMOND, Va. (3/30/16)--Virginia Gov. Terry McAuliffe signed legislation giving the state’s credit unions more flexibility when pursuing merger opportunities. The Virginia Credit Union League and credit unions advocated heavily in favor of HB 874, which is effective July 1.
“Enactment of our voluntary merger legislation was made possible by months of work by our credit unions and league staff,” said league President Rick Pillow. “While our final bill did not achieve everything we set out to do, it does remove a significant hurdle for state-chartered credit unions pursuing mutually beneficial mergers.”
He added, “It also adds to a growing number of progressive field-of-membership and chartering laws on the books in our states. While we appreciate the strides the National Credit Union Administration has made recently in modernizing field-of-membership regulation, we hope new laws like ours will keep field-of-membership issues front and center at the NCUA.”
The law allows two state-chartered credit unions with unlike charters to merge provided one of the credit unions serves 35,000 members or less. The continuing credit union would hold both charters, allowing it to serve the fields of membership each credit union held prior to the merger, reported the league’s VACUL News.
The merger flexibility legislation was a key focus during the league’s Storm the Hill event, where more than 375 credit union advocates visited the General Assembly.