Bill Would Allow FCUs To Set Term Limits For Board

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A regulatory relief package being drafted Wednesday by the House Financial Services Committee's Financial Institutions Subcommittee would include a provision allowing federal credit unions to set term limits on directors for the first time. The same provision would also allow credit unions to expel a member who is disruptive to its operations without the need for a two-thirds vote.

The bill, being 'marked-up' by the panel, includes nine major provisions for credit unions, including: extension of loan maturity limits from 12-years to 15-years; an increase in investment limits in CUSOs from 1% of shares and undivided earnings to 3%; an expansion of permissible investments; an allowance for voluntary mergers involving multiple common bond credit unions without numerical limits; and a provision allowing privately insured credit unions to join the Federal Home Loan Bank System.

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