RICHMOND, Va.-A charter conversion bill that would allow state-chartered CUs to convert to mutual savings banks in the same way federally chartered CUs do appears well on its way to passage.
The bill, which was originally crafted to allow banks to acquire credit unions and vice versa, was unanimously approved by the state Senate following passage in the House. The two chambers must vote on the legislation once more before it heads to Gov. Bob McDonnell's desk, where he is expected to sign it. The new law would go into effect July 1.
"We're pleased with the final version of this legislation and we believe it represents a victory for the member-owners of Virginia's credit unions," Virginia CU League President Rick Pillow told CU Journal.
"We viewed the original version of this legislation as nothing less than an acquisition bill, designed to give for-profit banks the authority to buy up not-for-profit credit unions, without providing adequate protections for member-owners. The original language would have put for-profit banks in the driver's seat; the substitute bill we drafted puts charter choice firmly in the hands of credit union member-owners, where it belongs."
