Senate bill would remove outdated CU board duties

February 25, 2020

Sen. Thom Tillis (R-N.C.) and Richard Burr (R-N.C.) introduced a credit union governance modernization bill Tuesday, the result of direct engagement between the legislators, CUNA and the Carolinas Credit Union League. This is the second similar bill released this week, as CUNA and the Leagues seek modernizations of the Federal Credit Union Act that would allow credit unions to better serve members, families and communities.

“By helping to bring credit union governance into the 21st century, Sens. Burr and Tillis are strengthening consumers’ access to Main Street financial partners that are dedicated to empowering their financial well-being,” said CUNA President/CEO Jim Nussle.

Specifically, the Credit Union Fairness Act (S. 3326) would remove outdated duties for credit union boards and remove the requirement for credit unions to provide NCUA with the names of its loan officers from the Federal Credit Union Act.

"S 3326 represents another positive step forward for credit unions as we work to update and modernize the Federal Credit Union Act. We appreciate the support and leadership of Senators Tillis and Burr," said Dan Schline, president/CEO of the Carolinas Credit Union League. "The support speaks to the positive relationships that credit unions in North Carolina have developed with them over the years and our mutual interest in helping credit unions focus on improving their lives of their members.

“Credit Unions are in an important part of the U.S. banking system and provide important services to local communities across the country,” said Tillis. “Unfortunately, they still face burdensome requirements that make it harder to compete on a level playing field with other financial institutions. This legislation would remove red-tape created by bureaucrats in Washington and amend the Board of Director’s role in operating credit unions.”

Sens. Tina Smith (D-Minn.) and Ben Sasse (R-Neb.) introduced a bipartisan bill Monday that would allow a credit union board to expel a member for just cause, a bill also resulting from CUNA, Minnesota Credit Union Network and Nebraska Credit Union League engagement.