SENATE BILL REPORT

HB 146

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

Senate Hearing Date(s):March 26, 1987

Majority Report:  Do pass.

      Signed by Senators Moore, Chairman; Bender, Vice Chairman; Bottiger, McDermott, Metcalf, von Reichbauer.

Senate Staff:Stephanie Yates (786-7416)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS, MARCH 26, 1987

BACKGROUND:

In 1984 the Legislature rewrote the credit union code.  Among the changes were the following: a provision updating the grant of authority to Washington State credit unions to engage in lending and investment activities that the federal government allowed federally chartered credit unions; a provision requiring credit unions to hold annual meetings within ninety days of the end of the fiscal year; a provision limiting personal loans to a term not greater than twelve years if not secured by real estate and fifteen years if secured by real estate; a provision limiting mobile home loans to a term not greater than twenty years; and a provision requiring that any account a credit union had in another financial institution not exceed the amount insured by the federal government.

SUMMARY:

Several changes are made to the credit union code.  The provisions granting state chartered credit unions the authority to engage in activities permitted federal credit unions is updated to permit the exercise of any activity permitted federal credit unions as of the date of passage of this bill.

Credit unions are no longer required to meet within ninety 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The loan maturity time limits for personal loans and mobile home loans are repealed.

The requirement that credit union accounts with other financial institutions be fully insured is repealed.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 one percent of the credit union's total paid-in and unimpaired capital and surplus.

Fiscal Note:      none requested

Senate Committee - Testified: Jim Byrne, Washington Credit Union League; Gary Oakland, Boeing Employees Credit Union