FINAL BILL REPORT

HB 146

PARTIAL VETO

                                  C 338 L 87

BYRepresentatives Lux, Winsley, Nutley, Chandler, Day, P. King, Dellwo and Zellinsky

Revising provisions relating to credit unions.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

SYNOPSIS AS ENACTED

BACKGROUND:

In 1984, the legislature rewrote the Credit Union Code.  Among the changes were provisions:  updating the grant of authority to Washington state credit unions to engage in lending and investment activities that the federal government allows federally chartered credit unions; requiring credit unions to hold annual meetings within 90 days of the end of the fiscal year; limiting personal loans to a term of no greater than 12 years if not secured by real estate and to a term no greater than 15 years if secured by real estate; limiting mobile home loans to a term of not greater than 20 years; and requiring that any account a credit union has in another financial institution not exceed the amount insured by the federal government.

SUMMARY:

Several changes are made to the 1984 Credit Union Code Revision.  The provisions granting state chartered credit unions the authority to engage in activities permitted federal credit unions is updated.

Credit unions are no longer required to meet within 90 days of the end of the fiscal year but must meet at least annually.

Credit union members may not vote by mail on issues presented at a special meeting unless the issue concerns the merger of the credit union.

The treasurer of the credit union does not have to be a member of the board of directors of the credit union.

Credit unions are granted a lien on the account(s) of any member who owes the credit union money.

The loan maturity time limits for personal loans and mobile home loans are repealed.

The requirement that credit union accounts with other financial institutions be fully insured is repealed.

Credit union authority to make loans to organizations owned by the credit union is increased to an additional 1 percent of the credit union's total paid-in and unimpaired capital and surplus.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    49     0

EFFECTIVE:July 26, 1987

Partial Veto Summary:  Provisions are vetoed granting credit unions a lien on accounts owned by persons owing money to the credit unions.  (See VETO MESSAGE)