OLYMPIA, Wash.—Two bills that had the backing of the Northwest Credit Union Association have passed the Washington legislature and are now on their way to the governor for a signature.
Passed were:
- Senate Bill 5757, which addresses credit unions' corporate governance and investments. The bill simplifies and clarifies the duties of the credit union board of directors; eliminates the requirement to “declare” dividends to conform to common business practices; increases CUSO investment/loan authority from the current 1%, to 5%, and clarifies that gifts of nominal value, insurance coverage, and expense reimbursements are not subject to the rules on compensation.
- Senate Bill 5300 updates the DFI' regulatory enforcement powers regarding credit unions and organizations providing services to credit unions, and also updates parity provision; changes “Washington Credit Union League” to “Northwest Credit Union Association”; extends the timeframe for a membership meeting to vote on suspension of members of a committee or members of the board, and lowers the member voting requirement from two-thirds to a simple majority for merger or conversion of a state CU into federal, out-of-state, or foreign credit union, or other type of financial institution, unless a greater percentage is required by a credit union’s bylaws.