AUSTIN, Texas – State chartered credit unions will have to provide a variety of new information to members every years as part of the state’s Sunset legislation that renewed the Department of CUs for another 12 years.
The new law will require all state charters to provide an annual report to their members through their websites or at their annual meetings if the credit union does not have a website. The report must contain a current balance sheet, an income and expense statement, the name and date of expiration of the term of each board member, a description of changes to management, bylaws, articles of incorporation, financial condition, membership size, and services offered since the last report.
The law also requires that credit unions notify their members that the following documents are available: a summary of the most recent annual audit, the most recent statement of financial condition, the IRS Form 990, as well as any other documents the members are entitled to possess (for example, the bylaws state that members are entitled to inspect the bylaws and articles of incorporation).
Credit unions must place the notice on their websites if they maintain a website, and in a newsletter twice a year if the credit union distributes a newsletter.
