Connecticut Senate Bill SB00800

Connecticut 2017 Regular Session

• Introduced: 2/9/17
• Refer: 2/9/17

Caption

An Act Concerning The Draw Period For Second Mortgages Issued By Credit Unions, The Approval Process For Changes To Credit Union Bylaws And The Documentation Requirements For Annual Bank Audits.

Impact

The impact of SB00800 on state laws is significant, as it modifies the maximum maturity period for mortgage loans issued by credit unions and alters administrative requirements for such financial entities. These changes potentially enhance consumer choice by allowing longer draw periods, which can be particularly beneficial for borrowers who may need extended timeframes to make payments on secured loans. Moreover, by simplifying the bylaw amendment process, the bill allows credit unions to respond more rapidly to changing financial regulations or operational needs without excessive delays.

Summary

SB00800 aims to amend existing banking regulations regarding the draw periods for second mortgages issued by credit unions in Connecticut, the approval process for changes to a credit union's bylaws, and the documentation requirements for annual bank audits. This legislation is intended to provide more flexibility in the financing options available through credit unions and to streamline the procedural and documentation processes related to credit unions and banks. Key components of the bill involve extending the maximum draw periods for second mortgages and clarifying the procedures for amending a credit union's bylaws.

Contention

While the bill is primarily aimed at improving the functionality of credit unions, there may be contention around the provisions dealing with bylaws and bank audits. Critics might argue that easing the requirements for amending bylaws could lead to less oversight over credit unions’ operational structures, creating potential risks for consumers. Additionally, the implications of altering documentation requirements for audits could raise concerns about transparency and accountability within banks, highlighting the need for careful consideration of how these changes would be implemented to safeguard stakeholder interests.