SCS/SB 797 - This act modifies various provisions relating to credit unions.TRIPLICATE AND DUPLICATE FILINGS
Current law requires credit unions to make certain filings with the Director of the Division of Credit Unions (DCU) within the Department of Commerce and Insurance in triplicate or duplicate. This act modifies this provision to require a single filing, rather than three or two. (Sections 370.010, 370.030, 370.350, 370.355, and 370.358)
OTHER FORMS OF DELIVERY
Current law requires the DCU Director to mail copies of certain filings made with the Division as well as notice to all interested parties for certain meetings pertaining to credit union business. This act permits any other form of delivery as an alternative to mail delivery. (Section 370.071, 370.151, 370.358)
BOARD OF DIRECTORS MEMBERSHIP
The act modifies provisions relating to the board membership of credit unions by repealing a provision requiring the election of a president, vice president, secretary, and treasurer and requiring instead the election of a chairman, vice chairman, secretary, and treasurer. Moreover, the positions of secretary and treasurer may be held by the same person if the bylaws of the credit union so provide.(Section 370.190)
EXPULSION OF MEMBERS
The act permits the board of directors, the president, or a designated executive officer to expel a member of the credit union pursuant to a written policy adopted by the board. A person expelled may appeal such decision pursuant to such policy. (Section 370.340)
POWERS OF CREDIT UNIONS AND BOARDS OF DIRECTORS
In addition to powers currently granted, credit unions are permitted to collect fees and other charges for extensions of credit in connection with making, closing, disbursing, extending, collecting, renewing, or enforcing a debt in the event of delinquency by a member. (Section 370.300)
The act repeals a provision allowing credit unions to charge
entrance fees not to exceed one dollar. (Section 370.270)
In addition to powers currently granted, the board of directors of a credit union is permitted to:
• Authorize the employment and compensation of the chief executive officer;
• Approve annual operating budgets for the credit union;
• Declare dividends on regular shares;
• Accept resignations and fill vacancies of the board, credit committee, and supervisory committee;
• Amend the bylaws relating to membership action; and
• Hear appeals of people denied membership by the credit union. (Section 370.200)
The act repeals a provision allowing the board of directors to delegate to the treasurer, or manager, the power to make loans to members. (Section 370.220)
Current law allows credit unions to make a charge to a member's share account if the member fails to keep the credit union informed about his or her current address. This act modifies that to allow a quarterly charge. (Section 370.260)
ELECTRONIC BALLOTS
Current law allows a credit union to charge initial or recurring membership fees, provided such fees have been approved by a majority of the membership in attendance at any regular or special meeting or by a mail ballot. This act allows such fees to be charged if approved by an electronic ballot as well. (Section 370.071)
Current law also allows the bylaws of a credit union, when approved by the membership, to provide for mail ballots for the election of officers. This act allows for the use of electronic ballots for the election of officers as well. (Section 370.170)
REPORTS AND EXAMINATIONS OF CREDIT UNIONS
Under current law, a credit union is required to make a report of its condition on or before January 31 of each year. This act modifies this provision to require reports to follow the reporting requirements of federal credit union insurers. Furthermore, it is the responsibility of the president or the president's designee to verify that the credit union has made this report. (Section 370.110)
The act creates a provision allowing the DCU Director to accept an examination of a credit union made by the federal credit union insurer instead of the Director conducting an annual examination of a credit union. (Section 370.120)
The act increases the length of time a credit union has to make a report before the DCU Director revokes its certificate of approval from 15 days to 30 days. (Section 370.130)
AUTHORIZATION OF LOANS OR ADVANCES
The act requires any credit committee or a credit manager that is authorized to approve a loan or advance to follow the bylaws, policies, and procedures established by the board of directors. (Section 370.220).
CREDIT UNIONS MAY WITHHOLD PAYMENTS
A credit union may refuse to make a payment from an account to a depositor, shareholder, any trust or payable on-death account beneficiary, or any other person claiming an interest in the account under certain circumstances detailed in the act. The credit union is not liable for damages as a result of an action taken under this provision. (Section 370.288)
LOANS TO MEMBERS
The act repeals a provision allowing members to receive a loan in installments instead of one sum if the loan is for purchasing necessary supplies for growing crops. The act additionally repeals a provision allowing a borrower to repay the whole or any part of a loan on any day on which the credit union is open. (Section 370.310)
This act is identical to certain provisions in the truly agreed to HCS/SCS/SB 599 (2020), certain provisions in HCS/HB 2092 (2020), HCS/HBs 2204 & 2257 (2020), and certain provisions in HCS/HB 2461 (2020).
SCOTT SVAGERA