Texas Lawmakers Consider Update To State CU Act
DALLAS-Revisions to the State Credit Union Act are heading to the Texas house after the proposed bill was approved by the state After being approved by the state senate, according to Texas CU Department Commissioner Harold Feeney.
Texas law requires the regulator to review the act every few years to keep it modernized, according to the Texas CU League. This year, the department put forth a 26-page bill. Among the highlights: the act clarifies and strengthens the super parity provisions of the act to allow state-chartered CUs to do what is allowed by federal and other state chargers; with the approval of the commissioner, it allows the establishment of a state-chartered corporate CU; it permits coordination with the league and NCUA during disasters allowing the sharing of information; it allows CUs to purchase the assets of another entity; and it strengthens board governance, prescribing that the directors and officers stand in fiduciary relationship to the CU.
"We're glad the bill passed the Senate and are looking forward to its swift passage in the House," said Buddy Gill, chief advocacy officer for the Texas CU League. "In these volatile times it's more important than ever to keep the state charter strong and vibrant. We believe Texas credit unions have been healthier than some other parts of the country in large part due to having a separate and independent regulator and a strong state chartering system.
Cardholders Bill Of Rights OKd By House Committee
WASHINGTON-The House Financial Services Committee voted last week 48-19 in favor of HR 627, the Credit Cardholders Bill of Rights, which is aimed at what Congress is calling "abusive and deceptive" credit card practices.
Many of the bill's provisions are similar to regulatory rules already scheduled to go into effect in July of 2010.
Among the practices it seeks to ban are double-cycle billing, prolonged payment periods, and universal default. Credit unions have expressed general support for the legislation.
President Obama similarly met with some of the largest credit card issuers last week, many of which have received government bailout funds, and called for an end to many card practices, especially related to APRs and fees. CU Journal will have a comprehensive report on cards-related legislation in the May 4 edition.
St. Mary's Bank Celebrates Centennial
MANCHESTER, N.H.-St. Mary's Bank, the nation's first and oldest credit union, held its 100th annual members meeting last week, part of the year-long celebration of 100 years of credit unions.
"One of the things that we discovered during our 100th anniversary year-as we looked back upon the remarkable history of St. Mary's Bank," said Ovid Lamontagne, chairman of the board, "is that among all of the financial institutions that were operating in Manchester at the turn of the last century, St. Mary's Bank is the only one still in operation."
"That means through two world wars, the Great Depression, the bankruptcy of Amoskeag Manufacturing Company, and the economic disruptions over the late '80s and early '90s, St. Mary's has always been here to support and serve our members."
St. Mary's Bank ended 2008 with $652 million in assets.
SECU Donates $1M To Hospice
SMITHFIELD, N.C.-State Employees CU, which has contributed funds to the renovation and construction of several hospices, said its SECU Foundation gave $1 million to the construction of the Johnston Health Hospice here.
Local businesses, churches and individuals also gave money, helping the hospital raise nearly $4 million to the facility, which will be named for the CU giant.
NCUA Approves Two TIPs Charters
ALEXANDRIA, Va.-NCUA has granted two new TIP charters, allowing the credit unions to serve entire trades, industries or professions.
Grossmont Schools FCU, in El Cajon, Calif., was allowed to serve any education employees in the Grossmont Union High School District in San Diego County.
And Hotel and Travel Industry FCU, in Honolulu, was allowed to serve anyone working in the hotel and motel industry in the state of Hawaii, except in casinos.
