BIRMINGHAM, Ala. — An update to the Alabama Credit Union Act is headed to this state's governor's desk, and some of the changes include limited liability for boards of directors.
Sens. Slade Blackwell (R-Mountain Brook) and Roger Bedford (D-Russellville) helped shepherd HB 165, the Alabama Credit Union Act Update, through the Alabama Senate, which passed the bill last week. The legislation, which was sponsored by Rep. Greg Wren (R-Montgomery) adds new language to the act that governs state-chartered credit unions and makes significant changes to a law that has rarely been touched since its creation.
Other changes include new expulsion language for members of credit unions, new penalties for the fraudulent use of the term "credit union," new protections for credit unions on accounts created by minors, and increases the liability protection from $5,000 to $10,000 on accounts of deceased members.
The bill is being touted by the League of Southeastern Credit Unions and Affiliates as a "major victory" for Alabama credit unions.
"This much needed update to the Alabama Credit Union Act will benefit credit union members as soon as it is signed by the governor," said LSCU President and CEO Patrick La Pine. "Credit unions thank Alabama legislative leadership for seeing the value in updating the act."
The bill now awaits the signature of Republican Gov. Robert Bentley.
