South Carolina CU Bill Awaits Gov. Approval
COLUMBIA, S.C.-This state's credit unions are now awaiting Gov. Mark Sanford's signature on Senate Bill 235, which amends the South Carolina Credit Union Act in a number of ways.
Among the bill's updates: Adds "organization" as defined in the FCU Act to the list of deposit account holders; permits purchase of property for future expansion with approval of Board of Financial Institutions; clarifies that incidental powers allowed by state law shall not exceed those provided by federal law to FCUs; increases from 100 to 250 the maximum number of members in a group that may be added via "file and serve" process; eliminates the requirement that the group's "file and serve" letter indicate that no other credit union is providing service to the organization; provides the option of either a board-appointed credit committee or loan officers as credit union bylaws stipulate; changes the maximum residential loan term from thirty years to "the maximum allowed by FNMA or GNMA," changes the maximum loan-to-value percentage from 85% to the maximum allowed for FCUs, and changes the requirement for certified appraisals on loans of $50,000 or more to the maximum allowed for federal credit unions, while requiring inspection by a credit union appointed individual and evidence of value on file for those below that maximum. The South Carolina league supported the bill.
A Day in Jail For Elderly Caregiver
KALAMAZOO, Mich.-A provider of elder care was sentenced to a day in jail and ordered to repay $178,000 she stole from the credit union account of an old woman she was caring for. Stacey Banks, 30, knew that the woman for whom she held power of attorney didn't have all of her mental faculties and "preyed upon" her to drain her account at Educational Community CU, the Kalamazoo County Judge said during Banks' sentencing. Banks' mother-in-law, Alberta Banks, who was the chief caregiver for Mildred Riedell-Guimond, was also sentenced in the scheme last month.
The two women were ordered to make restitution to the family members of Riedell-Guimond, who died in 2004 at age 86. Stacey Banks was also ordered to have no contact with anyone over 65 who is not a family member without the permission of her probation officer.
SECU Trains Staff To Spot Abuse
RALEIGH, N.C.-State Employees CU has teamed with the state agencies to train its employees to spot elder abuse and mistreatment. Representatives form the state's Attorney General's office, the Division of Aging and Adult Services and Adult Protective Services teach credit union employees about the law, how to spot elder abuse and provide examples of the financial destitute caused by financial exploitation of the elderly. Employees are being taught to recognize and report such mistreatment. SECU officials acknowledge the role the credit union plays in helping families manage their finances and see a major role for employees in detecting and preventing elder abuse, exploitation and neglect.
LEVEL5 To Build AUFCU HQ
AUBURN, Ala.-Auburn University FCU has signed with LEVEL5 consultants to design a growth strategy for its expanding member base. The $100-million credit union plans to build a new headquarters and retail branch a quarter mile from the university's main campus to improve access for members and support future growth. The credit union plans to break ground on its new two-story, 18,000 square-foot headquarters this fall and complete construction by January 2009. The credit union plans to sell its existing on-campus facility to the University to facilitate further expansion on the northwest side of the campus.
Members 1st Plans Development
PALMYRA, Penn.-Members 1st FCU has acquired a seven-acre plot and is asking for town approval to subdivide it into three plots for a commercial development. The $1.2-billion CU plans to build a branch at the site and has sold one parcel to Ride Aid for a new drugstore. The third plot is designated for a restaurant or other high-use business. The plans were reviewed by local residents in a public hearing.
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