Vermont Eyes CU Modernization

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Credit unions in the Green Mountain State are working with state regulators on a proposal to update the state's credit union statute for the first time in 35 years to give them parity with federal charters. The main focus of a draft prepared by the Department of Banking is a "wild card" provision, such as that included in many other state statutes, which would provide the same powers to Vermont's 26 state charters as the six federal charters in the state, according to Thomas Candon, deputy commissioner of banking.

"The goal is to provide parity so that statechartered credit unions can do what federal charters can do, just like the state-chartered banks were given parity (in 2000) with nationally chartered banks," Candon, told The Credit Union Journal.

The bill would also update the state's archaic member business loan rule, allow for alternative forms of capital, modernize field of membership requirements, and set standards for merging troubled credit unions into healthy ones, under the draft.

The state legislature is expected to take up the bill when it returns in January.

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