MONTGOMERY, Ala.—Well-run credit unions in this state will now be examined every 18 months.
The change aligns with plans by NCUA to extend exam cycles for well-run federal charters, as well.
The Alabama House of Representatives has passed Senate Bill 27, a bill that extends the exam cycle for credit unions in this state, the Birmingham Business Journal reported.
This legislation would change the law to give the Alabama Credit Union Administration the ability to exam healthy credit unions on an 18-month cycle as opposed to the current statutory requirement of 12-months.
Prior to the legislature taking two weeks off for spring break, SB 27 received final passage in the Alabama Senate. The bill now moves to Gov. Kay Ivey's desk for signature.
“The LSCU would like to thank Sen. Ross and the sponsor of the House companion bill Rep. Marcel Black (D-Tuscumbia) for their support of credit unions on this extremely important priority,” League of Southeastern Credit Unions President and CEO Patrick La Pine told the publication. “This legislation will assist in alleviating some of the regulatory burden associated with the exam cycle for credit unions that have proven a strict adherence to guidelines.”
LSCU endorsed the bill.