SB371 Alabama 2013 Session

Under existing law, state credit unions are organized and regulated by the Alabama Credit Union Administration in Chapter 17 of Title 5, Code of Alabama 1975

This bill would extensively revise Chapter 17 to further provide for the regulation and operation of state credit unions by the Alabama Credit Union Administration

The bill would, among other things, do all of the following: (1) Further provide for the granting of charters to state credit unions by the Administrator of the Alabama Credit Union Administration

(2) Provide civil penalties for persons or entities using the term "credit union" in violation of law

(3) Authorize the board of directors, rather than two-thirds of the members of a credit union, to expel a credit union member

(4) Authorize the administrator to annually fix the operating assessment on credit unions to fund the Credit Union Administration

(5) Further provide for orders of the Credit Union Administration to take possession and control of a state credit union

(6) Specify that directors of a credit union may be reimbursed for expenses and provide limited liability for directors

(7) Further provide for deposits by minors

(8) Further provide for the disposition of accounts to a surviving spouse or guardian and for adverse claims for deposits

(9) Specify that insurance on accounts may be by a private insurance carrier

(10) Further provide for consolidation or merger of credit unions in danger of insolvency

(11) Further provide for the qualifications of the administrator

(12) Authorize the sharing of information with federal agencies

(13) Further specify the appointment of an assistant administrator under the state Merit System

Relating to the Credit Union Administration and the regulation of credit unions; to amend Sections 5-17-1 to 5-17-12, inclusive, 5-17-14 to 5-17-16, inclusive, 5-17-19, 5-17-22, 5-17-40, 5-17-41, 5-17-44, 5-17-45, 5-17-46, 5-17-48, 5-17-50 to 5-17-52, inclusive, 5-17-55 and 5-17-56, Code of Alabama 1975; and to repeal Sections 5-17-25 to 5-17-28, inclusive, 5-17-49, 5-17-53, and 5-2A-100 to 5-2A-103, inclusive, Code of Alabama 1975, to further provide for the granting of charters and for the regulation of credit unions and for the operation of the Credit Union Administration.