SB 5300

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 114 L 15

Synopsis as Enacted

Brief Description: Updating the department of financial institutions' regulatory enforcement powers regarding credit unions and organizations providing services to credit unions.

Sponsors: Senators Benton, Mullet, Fain, Darneille, Hobbs and Angel; by request of Department of Financial Institutions.

Senate Committee on Financial Institutions & Insurance

House Committee on Business & Financial Services

Background: Credit unions doing business in Washington may be chartered by the state or federal government. The National Credit Union Administration (NCUA) regulates federally chartered credit unions. The Department of Financial Institutions (Department) regulates state-chartered credit unions.

Credit Union Governance and Practices.

Enforcement. The Department may use various enforcement tools and actions, including removing or suspending officers, directors, or supervisory committee members; issuing temporary cease and desist orders; assessing fines; inspecting records and business practices; and liquidating a credit union or taking it into receivership. Within ten days after the receiver takes possession of a credit union's assets, the credit union may serve notice upon the receiver to appear in court to show cause why the credit union should not be restored to the possession of its assets. The court must dismiss the complaint if it finds that the receiver was appointed for cause. If the court finds that no cause existed, the court must require that the receiver restore the credit union to possession of its assets.

Summary: Credit Union Governance and Practices.


Various other technical changes are made.

Votes on Final Passage:








July 24, 2015