League Works to Update NC, SC State Credit Union Acts
April 8, 2021 — In January, the Carolinas Credit Union League helped introduce updates to both the North and South Carolina state credit union acts to improve and modernize the statutes in each state.
In South Carolina, following the successful passage of S. 337 in 2018—which was opposed by the SC banking associations—the League worked with Senate Banking Chairman Ronnie Cromer, House LCI Chairman Bill Sandifer, the SC Board of Financial Institutions, SC Banking Commissioner Rick Green, SC State Treasurer Curtis Loftis, and banking associations to make additional changes to the state charter to improve the business climate for credit unions.
Through many discussions, all stakeholders crafted and agreed to non-controversial items. These efforts have led to Sen. Cromer introducing S. 0467 and Rep. Sandifer introducing its House companion bill, H. 3583.
These new bills would update the credit union statute relative to:
- Simplifying approval/denial of credit union membership;
- Changing the minimum required frequency of board meetings from monthly to quarterly;
- Codifying state law to have an official process of a conversion from a federal to state charter; and
- Changing the required affirmative votes for conversion from 2/3 of membership to a majority.
- S. 467 has passed the Senate and awaits action in the House. The League will continue to report on this legation as it progresses.
Carolinas League Seeks to Update the South Carolina Credit Union Act
February 26, 2020 — The Carolinas Credit Union League led the effort to introduce S. 1107, which updates both the state’s banking charter and credit union act. The amendments to the Credit Union Act would ease the regulatory burdens of credit unions and permit credit unions to better serve their members.
After a contentious battle over the substantial South Carolina Credit Union Act updates in 2018, the League conferred with lawmakers, regulators and bankers to craft non-controversial items that would benefit credit unions and banks. The updates S. 1107 makes to the credit union statute are as follows.
SECTION 12. Section 34-26-350(2) of the 1976 Code is amended to read:
“(2) A credit union may maintain and dispose of other service facilities, including automated terminals, at locations other than its principal office upon approval of the commissioner. The maintenance of such facilities must be reasonably necessary to furnish service to its members or potential members.”
SECTION 13. Section 34-26-530 of the 1976 Code is amended to read:
“The board of directors shall act upon applications for membership or appoint one or more membership officers to approve applications for membership under such conditions as the board prescribes. Persons wishing to join a credit union must do so by written application which shall be acted upon in accordance with credit union procedure. A person denied membership by a membership officer may appeal the denial to the credit union board.”
SECTION 14. Section 34-26-640(A) of the 1976 Code is amended to read:
“(A) The board of directors shall meet as often as necessary and at least monthly and at other times as is necessary quarterly.”
SECTION 15. Section 34-26-645(13) of the 1976 Code is amended to read:
“(13) establish titles for all elected officers and senior management positions; and”
SECTION 16. Section 34-26-1220 of the 1976 Code is amended to read:
“(1) A credit union incorporated under the laws of this State may be converted to a credit union organized under the laws of any state or under the laws of the United States, or a credit union organized under the laws of the United States or of any other state may convert to a credit union incorporated under the laws of this State.
(2) To effect such a conversion, a credit union must receive the approval of a two-thirds majority of the members voting in accordance with the credit union’s bylaws on the question of a charter conversion and upon the approval of the credit union’s current and future regulator.
(3) The assets and liabilities of the predecessor credit union will vest in and become the property of the successor credit union subject to all existing liabilities against the predecessor credit union. Members of the predecessor credit union may become members of the successor credit union pursuant to this chapter.”
New Commissioner of Banking named
Feb. 11, 2019 — Richards H. Green has been promoted to serve as the next Commissioner of Banking for the state, South Carolina Treasurer Curtis Loftis, Chairman of the State Board of Financial Institutions, announced today.
Green has spent his entire career with the State Board of Financial Institutions, the agency charged with chartering, examining and regulating South Carolina state-chartered banks and credit unions. From an entry level Bank Examiner position in 1999 to his latest role as Chief Examiner, Green’s career as a regulator steadily progressed throughout the ranks as he took on more responsibility, oversaw more complex financial institutions and managed other examiners during his 20 years with the agency.
State CU League focusing on updating, modernizing charter
Jan. 12, 2018 — The Carolinas Credit Union League is focusing in South Carolina on passing Senate bill 337, which updates and modernizes the South Carolina state credit union charter. A hearing on the bill is set for Wednesday, Jan. 31, 2018, and the state association is urging credit unions to take action supporting the bill.
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