Connecticut 2025 Regular Session

Connecticut House Bill HB07083 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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3		-	LCO 1 of 10
	3	+	LCO No. 5393 1 of 10
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5		-	General Assembly ~~Substitute~~ Bill No. 7083
	5	+	General Assembly Raised Bill No. 7083
6	6		January Session, 2025
	7	+	LCO No. 5393
7	8
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
8	15
9	16
10	17
11	18
12	19		AN ACT CONCERNING VARIOUS REVISIONS TO THE CREDIT UNION
13		-	STATUTES RELATING TO NONMEMBER PAYMENTS, MEMBER
14		-	BUSINESS LOANS, CHARITABLE CONTRIBUTIONS, EXTENSIONS
15		-	OF CREDIT, CAPITAL AND NET WORTH.
	20	+	STATUTES RELATING TO LOAN OFFICERS, NONMEMBER
	21	+	PAYMENTS, MEMBER BUSINESS LOANS, CHARITABLE
	22	+	CONTRIBUTIONS, EXTENSIONS OF CREDIT, PROCEEDS OF THE
	23	+	RESALE OF REPOSSESSED GOODS, CAPITAL AND NET WORTH.
16	24		Be it enacted by the Senate and House of Representatives in General
17	25		Assembly convened:
18	26
19	27		Section 1. Section 36a-435b of the general statutes is repealed and the 1
20	28		following is substituted in lieu thereof (Effective July 1, 2025): 2
21	29		As used in sections 36a-435a to 36a-472a, inclusive, unless the context 3
22	30		otherwise requires: 4
23	31		(1) "Appointed director" means a director emeritus or an advisory 5
24	32		director of a Connecticut credit union [,] who is not a member of the 6
25	33		governing board of such credit union; 7
26	34		(2) "Branch" means any office established by a Connecticut credit 8
27	35		union, an out-of-state, state-chartered credit union, a federal credit 9
28	36		union [,] or an out-of-state, federally-chartered credit union, as the case 10
29	37		may be, at a fixed location, at which shares or deposits are received, 11
30	38		share drafts or checks are paid [,] or money is lent, including an office 12
	39	+	Raised Bill No. 7083
	40	+
	41	+
	42	+
	43	+	LCO No. 5393 2 of 10
	44	+
31	45		operated as a shared service center and not including the main office of 13
32	46		the credit union; 14
33		-	(3) "Capital" means undivided earnings, [regular reserves, other] 15 Substitute Bill No. 7083
34		-
35		-
36		-	LCO 2 of 10
37		-
	47	+	(3) "Capital" means undivided earnings, [regular reserves,] other 15
38	48		special purpose reserves, donated equity [,] and accumulated, 16
39	49		unrealized gains or losses on securities in accordance with generally 17
40	50		accepted accounting principles; 18
41	51		(4) "Certificate of incorporation" means the certificate of 19
42	52		incorporation of a Connecticut credit union and includes in the case of 20
43	53		Connecticut credit unions in existence on July 1, 1975, articles of 21
44	54		association, articles of incorporation and certificates of organization; 22
45	55		(5) "Corporate", when used in conjunction with any institution that is 23
46	56		a Connecticut credit union, federal credit union or out-of-state credit 24
47	57		union, means a corporate credit union, as defined in 12 CFR 704.2, as 25
48	58		from time to time amended; 26
49	59		(6) "Credit manager" means a natural person approved by the 27
50	60		governing board of a Connecticut credit union and employed by such 28
51	61		credit union to supervise its lending activities; 29
52	62		(7) "Credit union service organization services" means those services 30
53	63		that are authorized for credit union service organizations under state or 31
54	64		federal law, and that are closely related to credit union business, are 32
55	65		convenient and useful to credit union business, are reasonably related 33
56	66		to the operations of a credit union or are financial in nature; 34
57	67		(8) "Director" means a member of the governing board of a 35
58	68		Connecticut credit union; 36
59	69		(9) "Federal Credit Union Act" means 12 USC Section 1751 et seq., as 37
60	70		from time to time amended; 38
61	71		(10) "Financial institution" means any Connecticut credit union, bank, 39
62	72		federal credit union, out-of-state bank or out-of-state credit union; 40
63		-	(11) "Immediate family member" means [any person related by blood, 41
64		-	adoption or marriage to a person within the field of membership of the 42
65		-	Connecticut credit union] a (A) spouse, (B) natural or adoptive parent, 43
66		-	child or sibling, (C) stepparent, stepchild or stepsibling, (D) father-in-44
67		-	law, mother-in-law, daughter-in-law, son-in-law, brother-in-law or 45 Substitute Bill No. 7083
	73	+	Raised Bill No. 7083
68	74
69	75
70		-	LCO 3 of 10
71	76
72		-	sister-in-law, (E) grandparent or grandchild, or (F) spouse of a 46
73		-	grandparent or grandchild; 47
74		-	(12) "Insider" means a director, appointed director, member of a 48
75		-	board-appointed committee, member of senior management or loan 49
76		-	officer of a Connecticut credit union; 50
77		-	(13) "Loan officer" means a natural person who for compensation or 51
78		-	gain, or with the expectation of compensation or gain, accepts loan 52
79		-	applications or offers or negotiates the terms of personal, business or 53
80		-	other loan products. "Loan officer" does not include a natural person 54
81		-	engaged solely as a loan processor or underwriter; 55
82		-	[(12)] (14) "Member" means any person who has been admitted to 56
83		-	membership in the Connecticut credit union in accordance with this 57
84		-	chapter; 58
85		-	[(13)] (15) "Member in good standing" means a member who (A) 59
86		-	owns at least one membership share in a credit union, (B) is current on 60
87		-	all credit obligations to the credit union, and (C) has not caused the 61
88		-	credit union a credit or share loss that remains outstanding; 62
89		-	[(14)] (16) "Membership share" means a share equal to the stated par 63
90		-	value of the Connecticut credit union which may not be withdrawn or 64
91		-	transferred except upon termination of membership and which confers 65
92		-	membership and voting rights on the member; 66
93		-	[(15)] (17) "Mobile branch" means any office of a Connecticut credit 67
94		-	union at which credit union business is conducted, which is in fact 68
95		-	moved or transported to one or more predetermined locations in 69
96		-	accordance with a predetermined schedule; 70
97		-	[(16)] (18) "Multiple common bond membership" means a field of 71
98		-	membership consisting of more than one group of individuals, each of 72
99		-	which has, within the group, a common bond of occupation or 73
100		-	association; 74
101		-	[(17)] (19) "Officer" means the chairperson, vice chairperson, 75 Substitute Bill No. 7083
	77	+	LCO No. 5393 3 of 10
	78	+
	79	+	(11) "Immediate family member" means any person related by blood, 41
	80	+	adoption or marriage to a person within the field of membership of the 42
	81	+	Connecticut credit union; 43
	82	+	(12) "Loan officer" means a natural person who for compensation or 44
	83	+	gain, or with the expectation of compensation or gain, accepts loan 45
	84	+	applications or offers or negotiates the terms of personal, business or 46
	85	+	other loan products. "Loan officer" does not include a natural person 47
	86	+	engaged solely as a loan processor or underwriter; 48
	87	+	[(12)] (13) "Member" means any person who has been admitted to 49
	88	+	membership in the Connecticut credit union in accordance with this 50
	89	+	chapter; 51
	90	+	[(13)] (14) "Member in good standing" means a member who (A) 52
	91	+	owns at least one membership share in a credit union, (B) is current on 53
	92	+	all credit obligations to the credit union, and (C) has not caused the 54
	93	+	credit union a credit or share loss that remains outstanding; 55
	94	+	[(14)] (15) "Membership share" means a share equal to the stated par 56
	95	+	value of the Connecticut credit union which may not be withdrawn or 57
	96	+	transferred except upon termination of membership and which confers 58
	97	+	membership and voting rights on the member; 59
	98	+	[(15)] (16) "Mobile branch" means any office of a Connecticut credit 60
	99	+	union at which credit union business is conducted, which is in fact 61
	100	+	moved or transported to one or more predetermined locations in 62
	101	+	accordance with a predetermined schedule; 63
	102	+	[(16)] (17) "Multiple common bond membership" means a field of 64
	103	+	membership consisting of more than one group of individuals, each of 65
	104	+	which has, within the group, a common bond of occupation or 66
	105	+	association; 67
	106	+	[(17)] (18) "Officer" means the chairperson, vice chairperson, 68
	107	+	secretary and treasurer of the governing board of a Connecticut credit 69
	108	+	Raised Bill No. 7083
102	109
103	110
104		-	LCO 4 of 10
105	111
106		-	secretary and treasurer of the governing board of a Connecticut credit 76
107		-	union; 77
108		-	[(18)] (20) "Senior management" means the president or chief 78
109		-	executive officer, vice president or vice chief executive officer, chief 79
110		-	financial officer, credit manager, and any person occupying a similar 80
111		-	status or performing a similar function; 81
112		-	[(19)] (21) "Share" means the basic unit of moneys held by a member 82
113		-	of a Connecticut credit union in share accounts at a Connecticut credit 83
114		-	union on which a dividend may be paid; 84
115		-	[(20)] (22) "Shared service center" means a branch that is (A) 85
116		-	established by any combination of two or more [(A)] (i) Connecticut 86
117		-	credit unions, [(B)] (ii) out-of-state, state-chartered credit unions, [(C)] 87
118		-	(iii) federal credit unions, or [(D)] (iv) out-of-state, federally-chartered 88
119		-	credit unions, [that is] and (B) operated in such a manner as to provide 89
120		-	a credit union member the same credit union services that the credit 90
121		-	union member could lawfully obtain at the main office of the 91
122		-	[member’s] member's credit union; and 92
123		-	[(21)] (23) "Single common bond membership" means a field of 93
124		-	membership consisting of one group that has a common bond of 94
125		-	occupation or association. 95
126		-	Sec. 2. Subsection (a) of section 36a-456b of the general statutes is 96
127		-	repealed and the following is substituted in lieu thereof (Effective July 1, 97
128		-	2025): 98
129		-	(a) As used in this section: 99
130		-	(1) "Tax and loan account" means an account, the balance of which is 100
131		-	subject to the right of immediate withdrawal, established for receipt of 101
132		-	payments of federal taxes and certain United States obligations. Such 102
133		-	accounts are not shares, as defined in [subdivision (17) of] section 36a-103
134		-	435b, as amended by this act; and 104
135		-	(2) "Note account" means a note, subject to the right of immediate call, 105 Substitute Bill No. 7083
	112	+	LCO No. 5393 4 of 10
	113	+
	114	+	union; 70
	115	+	[(18)] (19) "Senior management" means the president or chief 71
	116	+	executive officer, vice president or vice chief executive officer, chief 72
	117	+	financial officer, credit manager, and any person occupying a similar 73
	118	+	status or performing a similar function; 74
	119	+	[(19)] (20) "Share" means the basic unit of moneys held by a member 75
	120	+	of a Connecticut credit union in share accounts at a Connecticut credit 76
	121	+	union on which a dividend may be paid; 77
	122	+	[(20)] (21) "Shared service center" means a branch established by any 78
	123	+	combination of two or more [(A)] Connecticut credit unions, [(B)] out-79
	124	+	of-state, state-chartered credit unions, [(C)] federal credit unions [,] or 80
	125	+	[(D)] out-of-state, federally-chartered credit unions, that is operated in 81
	126	+	such a manner as to provide a credit union member the same credit 82
	127	+	union services that the credit union member could lawfully obtain at the 83
	128	+	main office of the [member’s] member's credit union; 84
	129	+	[(21)] (22) "Single common bond membership" means a field of 85
	130	+	membership consisting of one group that has a common bond of 86
	131	+	occupation or association. 87
	132	+	Sec. 2. Subsection (a) of section 36a-456b of the general statutes is 88
	133	+	repealed and the following is substituted in lieu thereof (Effective July 1, 89
	134	+	2025): 90
	135	+	(a) As used in this section: 91
	136	+	(1) "Tax and loan account" means an account, the balance of which is 92
	137	+	subject to the right of immediate withdrawal, established for receipt of 93
	138	+	payments of federal taxes and certain United States obligations. Such 94
	139	+	accounts are not shares, as defined in [subdivision (17) of] section 36a-95
	140	+	435b, as amended by this act; and 96
	141	+	(2) "Note account" means a note, subject to the right of immediate call, 97
	142	+	evidencing funds held by depositories electing the note option under 98
	143	+	Raised Bill No. 7083
136	144
137	145
138		-	LCO 5 of 10
139	146
140		-	evidencing funds held by depositories electing the note option under 106
141		-	applicable United States Treasury Department regulations. Note 107
142		-	accounts are not shares, as defined in [subdivision (17) of] section 36a-108
143		-	435b, as amended by this act. 109
144		-	Sec. 3. Subsection (e) of section 36a-456a of the general statutes is 110
145		-	repealed and the following is substituted in lieu thereof (Effective July 1, 111
146		-	2025): 112
147		-	(e) (1) A Connecticut credit union may receive payments from a 113
148		-	nonmember who is [(1)] (A) an individual, into a share account held 114
149		-	jointly with a member of the Connecticut credit union, which share 115
150		-	account is subject to the provisions of section 36a-290; [(2)] (B) the 116
151		-	United States, this state or any municipality or other political 117
152		-	subdivision thereof; [(3)] (C) a federally-recognized Native American 118
153		-	tribal government located in this state; or [(4)] (D) another Connecticut 119
154		-	credit union, federal credit union or out-of-state credit union. 120
155		-	(2) Notwithstanding the provisions of subdivision (1) of this 121
156		-	subsection, a Connecticut credit union that is designated by the United 122
157		-	States Department of the Treasury as a community development 123
158		-	financial institution under 12 CFR Part 1805, as amended from time to 124
159		-	time, may receive payments from any nonmember, provided no such 125
160		-	payment shall exceed the lesser of one million five hundred thousand 126
161		-	dollars or twenty-five per cent of the total value of all shares of such 127
162		-	Connecticut credit union. 128
163		-	Sec. 4. Subparagraph (A) of subdivision (2) of section 36a-455a of the 129
164		-	general statutes is repealed and the following is substituted in lieu 130
165		-	thereof (Effective July 1, 2025): 131
166		-	(2) (A) Issue shares to its members and receive payments on shares 132
167		-	from its members and from [those] nonmembers [specified in] in 133
168		-	accordance with the provisions of subsection (e) of section 36a-456a, as 134
169		-	amended by this act, subject to the provisions of sections 36a-290 to 36a-135
170		-	297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, as amended 136
171		-	by this act, (B) receive deposits of members and nonmembers subject to 137 Substitute Bill No. 7083
	147	+	LCO No. 5393 5 of 10
	148	+
	149	+	applicable United States Treasury Department regulations. Note 99
	150	+	accounts are not shares, as defined in [subdivision (17) of] section 36a-100
	151	+	435b, as amended by this act. 101
	152	+	Sec. 3. Subsection (e) of section 36a-456a of the general statutes is 102
	153	+	repealed and the following is substituted in lieu thereof (Effective July 1, 103
	154	+	2025): 104
	155	+	(e) (1) A Connecticut credit union may receive payments from a 105
	156	+	nonmember who is [(1)] (A) an individual, into a share account held 106
	157	+	jointly with a member of the Connecticut credit union, which share 107
	158	+	account is subject to the provisions of section 36a-290; [(2)] (B) the 108
	159	+	United States, this state or any municipality or other political 109
	160	+	subdivision thereof; [(3)] (C) a federally-recognized Native American 110
	161	+	tribal government located in this state; or [(4)] (D) another Connecticut 111
	162	+	credit union, federal credit union or out-of-state credit union. 112
	163	+	(2) Notwithstanding the provisions of subdivision (1) of this 113
	164	+	subsection, a Connecticut credit union that is designated by the United 114
	165	+	States Department of the Treasury as a community development 115
	166	+	financial institution under 12 CFR Part 1805, as amended from time to 116
	167	+	time, may receive payments from any nonmember, provided no such 117
	168	+	payment shall exceed the greater of three million dollars or fifty per cent 118
	169	+	of the total value of all shares of such Connecticut credit union. 119
	170	+	Sec. 4. Subparagraph (A) of subdivision (2) of section 36a-455a of the 120
	171	+	general statutes is repealed and the following is substituted in lieu 121
	172	+	thereof (Effective July 1, 2025): 122
	173	+	(2) (A) Issue shares to its members and receive payments on shares 123
	174	+	from its members and from [those] nonmembers [specified in] in 124
	175	+	accordance with the provisions of subsection (e) of section 36a-456a, as 125
	176	+	amended by this act, subject to the provisions of sections 36a-290 to 36a-126
	177	+	297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, as amended 127
	178	+	by this act, (B) receive deposits of members and nonmembers subject to 128
	179	+	provisions of sections 36a-456a and 36a-456b, as amended by this act, 129
	180	+	Raised Bill No. 7083
172	181
173	182
174		-	LCO 6 of 10
175	183
176		-	provisions of sections 36a-456a and 36a-456b, as amended by this act, 138
177		-	(C) reduce the amount of its member and nonmember shares and 139
178		-	deposits, (D) expel members and cancel shares in accordance with 140
179		-	section 36a-439a, and (E) provide check cashing and wire and electronic 141
180		-	transfer services to nonmembers who are within such credit union's 142
181		-	field of membership; 143
182		-	Sec. 5. Subdivision (3) of subsection (a) of section 36a-458a of the 144
183		-	general statutes is repealed and the following is substituted in lieu 145
184		-	thereof (Effective July 1, 2025): 146
185		-	(3) "Member business loan" means any loan, line of credit or 147
186		-	unfunded commitment thereof, letter of credit or any other extension of 148
187		-	credit, where the borrower intends to use or uses the proceeds for any 149
188		-	of the following purposes: (A) Commercial; (B) corporate; (C) 150
189		-	investment property; (D) business venture; or (E) agricultural, but does 151
190		-	not include the following loans: 152
191		-	(i) A loan intended for personal use; 153
192		-	[(i)] (ii) A loan fully secured by a lien on a one-to-four family 154
193		-	residence that is the primary residence of the member; 155
194		-	[(ii)] (iii) A loan fully secured by shares in the credit union making 156
195		-	the loan or by shares or deposits in other financial institutions; 157
196		-	[(iii)] (iv) One or more loans to a member or an associated member 158
197		-	where the proceeds are to be used or are used for the purposes specified 159
198		-	in this subdivision to benefit a common endeavor and which, in the 160
199		-	aggregate, are equal to less than fifty thousand dollars; 161
200		-	[(iv)] (v) A loan where any agency of the federal government, a state 162
201		-	or any political subdivision of such state, fully insures or guarantees 163
202		-	repayment, or provides an advance commitment to purchase the loan in 164
203		-	full; [or] 165
204		-	[(v)] (vi) A loan granted by the corporate Connecticut credit union to 166
205		-	a Connecticut credit union, federal credit union or out-of-state credit 167 Substitute Bill No. 7083
	184	+	LCO No. 5393 6 of 10
	185	+
	186	+	(C) reduce the amount of its member and nonmember shares and 130
	187	+	deposits, (D) expel members and cancel shares in accordance with 131
	188	+	section 36a-439a, and (E) provide check cashing and wire and electronic 132
	189	+	transfer services to nonmembers who are within such credit union's 133
	190	+	field of membership; 134
	191	+	Sec. 5. Subdivision (3) of subsection (a) of section 36a-458a of the 135
	192	+	general statutes is repealed and the following is substituted in lieu 136
	193	+	thereof (Effective July 1, 2025): 137
	194	+	(3) "Member business loan" means any loan, line of credit or 138
	195	+	unfunded commitment thereof, letter of credit or any other extension of 139
	196	+	credit, where the borrower intends to use or uses the proceeds for any 140
	197	+	of the following purposes: (A) Commercial; (B) corporate; (C) 141
	198	+	investment property; (D) business venture; or (E) agricultural, but does 142
	199	+	not include the following loans: 143
	200	+	(i) A loan intended for personal use; 144
	201	+	[(i)] (ii) A loan fully secured by a lien on a one-to-four family 145
	202	+	residence, [that] regardless of whether such residence is the primary 146
	203	+	residence of the member; 147
	204	+	[(ii)] (iii) A loan fully secured by shares in the credit union making 148
	205	+	the loan or by shares or deposits in other financial institutions; 149
	206	+	[(iii)] (iv) One or more loans to a member or an associated member 150
	207	+	where the proceeds are to be used or are used for the purposes specified 151
	208	+	in this subdivision to benefit a common endeavor and which, in the 152
	209	+	aggregate, are equal to less than fifty thousand dollars; 153
	210	+	[(iv)] (v) A loan where any agency of the federal government, a state 154
	211	+	or any political subdivision of such state, fully insures or guarantees 155
	212	+	repayment, or provides an advance commitment to purchase the loan in 156
	213	+	full; [or] 157
	214	+	[(v)] (vi) A loan granted by the corporate Connecticut credit union to 158
	215	+	Raised Bill No. 7083
206	216
207	217
208		-	LCO 7 of 10
209	218
210		-	union; or 168
211		-	(vii) A commercial loan to a nonmember or a participation interest in 169
212		-	a commercial loan to a nonmember that (I) is acquired by a federally 170
213		-	insured credit union in compliance with all applicable laws and 171
214		-	regulations, and (II) is not traded for a member business loan for the 172
215		-	purpose of circumventing the limitations on member business loans 173
216		-	established in subsections (f) to (i), inclusive, of this section. 174
217		-	Sec. 6. Subdivision (17) of section 36a-455a of the general statutes is 175
218		-	repealed and the following is substituted in lieu thereof (Effective July 1, 176
219		-	2025): 177
220		-	(17) (A) In the discretion of [a majority of its governing board] the 178
221		-	Connecticut credit union's senior management, make charitable 179
222		-	contributions or gifts, [to or for the use of any corporation, trust or 180
223		-	community chest, fund or foundation created or organized under the 181
224		-	laws of the United States or of this state and organized and operated 182
225		-	exclusively for charitable, educational or public welfare purposes, or of 183
226		-	any hospital which is located in this state and which is exempt from 184
227		-	federal income taxes and to which contributions are deductible under 185
228		-	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 186
229		-	corresponding internal revenue code of the United States, as from time 187
230		-	to time amended] provided (i) the aggregate amount of such charitable 188
231		-	contributions or gifts made during a fiscal year shall not exceed one ten-189
232		-	thousandth of the net assets of the Connecticut credit union as of the 190
233		-	close of the prior fiscal year, (ii) no such charitable contributions or gifts 191
234		-	are made to a recipient if an insider or immediate family member of an 192
235		-	insider is a director or member of senior management of such recipient, 193
236		-	and (iii) the Connecticut credit union establishes and maintains a record 194
237		-	of any charitable contribution or gift made pursuant to this 195
238		-	subparagraph; and 196
239		-	(B) (i) If approved by a majority of the Connecticut credit union's 197
240		-	governing board and documented in such governing board's minutes, 198
241		-	make charitable contributions or gifts (I) during a fiscal year that, in the 199 Substitute Bill No. 7083
	219	+	LCO No. 5393 7 of 10
	220	+
	221	+	a Connecticut credit union, federal credit union or out-of-state credit 159
	222	+	union; or 160
	223	+	(vii) A commercial loan to a nonmember or a participation interest in 161
	224	+	a commercial loan to a nonmember that (I) is acquired by a federally 162
	225	+	insured credit union in compliance with all applicable laws and 163
	226	+	regulations, and (II) is not traded for a member business loan for the 164
	227	+	purpose of circumventing the limitations on member business loans 165
	228	+	established in subsections (f) to (i), inclusive, of this section. 166
	229	+	Sec. 6. Subdivision (17) of section 36a-455a of the general statutes is 167
	230	+	repealed and the following is substituted in lieu thereof (Effective October 168
	231	+	1, 2025): 169
	232	+	(17) (A) In the discretion of [a majority of its governing board] its 170
	233	+	senior management, make charitable contributions or gifts [to or for the 171
	234	+	use of any corporation, trust or community chest, fund or foundation 172
	235	+	created or organized under the laws of the United States or of this state 173
	236	+	and organized and operated exclusively for charitable, educational or 174
	237	+	public welfare purposes, or of any hospital which is located in this state 175
	238	+	and which is exempt from federal income taxes and to which 176
	239	+	contributions are deductible under Section 501(c) of the Internal 177
	240	+	Revenue Code of 1986, or any subsequent corresponding internal 178
	241	+	revenue code of the United States, as from time to time amended] that 179
	242	+	are each in an amount not exceeding one one-thousandth of the net 180
	243	+	assets of the Connecticut credit union as of the close of the prior fiscal 181
	244	+	year, and (B) in the discretion of a majority of its governing board, make 182
	245	+	charitable contributions or gifts that may each be in any amount; 183
	246	+	Sec. 7. Subsection (d) of section 36a-454b of the general statutes is 184
	247	+	repealed and the following is substituted in lieu thereof (Effective October 185
	248	+	1, 2025): 186
	249	+	(d) (1) An [insider,] immediate family member of [such] an insider or 187
	250	+	other person having a common ownership, investment or other 188
	251	+	pecuniary interest in a business enterprise with an insider or immediate 189
	252	+	Raised Bill No. 7083
242	253
243	254
244		-	LCO 8 of 10
245	255
246		-	aggregate, exceed one ten-thousandth of the net assets of the 200
247		-	Connecticut credit union as of the close of the prior fiscal year, or (II) to 201
248		-	a recipient even if an insider or immediate family member of an insider 202
249		-	is a director or member of senior management of such recipient, and (ii) 203
250		-	provided the Connecticut credit union establishes and maintains a 204
251		-	record of any charitable contribution or gift made pursuant to this 205
252		-	subparagraph; 206
253		-	Sec. 7. Subsections (a) to (d), inclusive, of section 36a-454b of the 207
254		-	general statutes are repealed and the following is substituted in lieu 208
255		-	thereof (Effective July 1, 2025): 209
256		-	(a) The governing board of a Connecticut credit union shall adopt a 210
257		-	written conflict of interest policy that includes provisions addressing 211
258		-	transactions with insiders and their immediate family members [, as 212
259		-	defined in section 36a-435b,] and other persons having a common 213
260		-	ownership, investment or other pecuniary interest in a business 214
261		-	enterprise with such insiders and immediate family members of such 215
262		-	persons. [As used in this section, (1) "insider" means a director, 216
263		-	appointed director, member of a board-appointed committee, member 217
264		-	of senior management and loan officer of a Connecticut credit union, 218
265		-	and (2) "immediate family member" has the same meaning as 219
266		-	"immediate family member" as defined in section 36a-435b, provided 220
267		-	the term also includes any person related by blood, adoption or 221
268		-	marriage to an appointed director.] 222
269		-	(b) An extension of credit made by a Connecticut credit union to an 223
270		-	insider shall require the approval of the governing board if (1) such 224
271		-	insider is the debtor, guarantor, endorser or cosigner of the extension of 225
272		-	credit; and (2) the extension of credit by itself or when added to the 226
273		-	aggregate of all outstanding extensions of credit for which such insider 227
274		-	is the debtor, guarantor, endorser or cosigner exceeds twenty-five 228
275		-	thousand dollars plus pledged shares. 229
276		-	(c) No insider of a Connecticut credit union or professional retained 230
277		-	by a Connecticut credit union shall in any manner, directly or indirectly, 231 Substitute Bill No. 7083
	256	+	LCO No. 5393 8 of 10
	257	+
	258	+	family member of [such] an insider shall not obtain an extension of 190
	259	+	credit from the Connecticut credit union with preferential rates, terms 191
	260	+	or conditions, or act as guarantor or endorser thereon, and shall not be 192
	261	+	involved in the appraisal or valuation of assets which are to be used as 193
	262	+	collateral for an extension of credit. 194
	263	+	(2) An insider, an employee of Connecticut credit union or a member 195
	264	+	of the governing board may obtain an extension of credit from the 196
	265	+	Connecticut credit union with preferential rates, terms or conditions, or 197
	266	+	act as guarantor or endorser thereon, provided such extension of credit 198
	267	+	is obtained pursuant to a written policy established by the governing 199
	268	+	board. Any such written policy shall require that (A) uniform 200
	269	+	preferential rates, terms or conditions be offered to insiders, employees 201
	270	+	and members of the governing board, except that insiders and members 202
	271	+	of the governing board may be offered additional rate discounts not 203
	272	+	exceeding one-half of one per cent beyond any discount offered to 204
	273	+	employees, and (B) no extension of credit shall be offered pursuant to 205
	274	+	such written policy if, at the time the credit is extended, the Connecticut 206
	275	+	credit union reasonably expects such extension of credit to result in a 207
	276	+	financial loss. 208
	277	+	Sec. 8. Subsection (d) of section 36a-785 of the general statutes is 209
	278	+	repealed and the following is substituted in lieu thereof (Effective October 210
	279	+	1, 2025): 211
	280	+	(d) (1) If the retail buyer does not redeem such goods within fifteen 212
	281	+	days after the holder of the contract has retaken possession, the holder 213
	282	+	of the contract shall sell such goods at public or private sale not less than 214
	283	+	fifteen days and not more than one hundred eighty days after the 215
	284	+	retaking. When the holder of the contract retakes possession by legal 216
	285	+	process, and an answer is interposed, the holder of the contract may, at 217
	286	+	the holder's election, hold such retaken goods for a period not to exceed 218
	287	+	thirty days after the entry of final judgment by a court of competent 219
	288	+	jurisdiction entitling the holder of the contract to possession of such 220
	289	+	goods before holding such resale. The holder of the contract shall give 221
	290	+	Raised Bill No. 7083
278	291
279	292
280		-	LCO 9 of 10
281	293
282		-	participate in any determination affecting such [person's] insider's or 232
283		-	professional's pecuniary interest or the pecuniary interest of any 233
284		-	immediate family member of such [person] insider or professional or 234
285		-	any corporation, partnership or association, other than the Connecticut 235
286		-	credit union, in which such [person] insider or professional is directly 236
287		-	or indirectly interested. 237
288		-	(d) [An] (1) Except as provided in subdivision (2) of this subsection, 238
289		-	an insider, immediate family member of such insider or other person 239
290		-	having a common ownership, investment or other pecuniary interest in 240
291		-	a business enterprise with an insider or immediate family member of 241
292		-	such insider shall not obtain an extension of credit from the Connecticut 242
293		-	credit union with preferential rates, terms or conditions, or act as 243
294		-	guarantor or endorser thereon, and shall not be involved in the 244
295		-	appraisal or valuation of assets which are to be used as collateral for an 245
296		-	extension of credit. 246
297		-	(2) An insider, an employee of a Connecticut credit union or a 247
298		-	member of the governing board may obtain an extension of credit from 248
299		-	the Connecticut credit union with preferential rates, terms or conditions, 249
300		-	or act as guarantor or endorser thereon, provided such extension of 250
301		-	credit is obtained pursuant to a written policy established by the 251
302		-	governing board. Any such written policy shall require that (A) uniform 252
303		-	preferential rates, terms or conditions are offered to insiders, employees 253
304		-	and members of the governing board, and (B) no extension of credit 254
305		-	shall be offered pursuant to such written policy if, at the time the credit 255
306		-	is extended, the Connecticut credit union reasonably expects such 256
307		-	extension of credit to result in a financial loss. 257
308		-	Sec. 8. Subsection (e) of section 36a-441a of the general statutes is 258
309		-	repealed and the following is substituted in lieu thereof (Effective July 1, 259
310		-	2025): 260
311		-	(e) As used in this section, the term "net worth" means the retained 261
312		-	earnings balance of the Connecticut credit union at the end of each 262
313		-	dividend period, excluding the allowance for loan and lease losses 263 Substitute Bill No. 7083
	294	+	LCO No. 5393 9 of 10
	295	+
	296	+	the retail buyer not less than ten days' written notice of the time and 222
	297	+	place of any public sale, or the time after which any private sale or other 223
	298	+	intended disposition is to be made, either personally or by registered 224
	299	+	mail or by certified mail, return receipt requested, directed to the retail 225
	300	+	buyer at such retail buyer's last-known place of business or residence. 226
	301	+	The holder of the contract may bid for such goods at any public sale. 227
	302	+	The proceeds of the resale shall be considered to be either the amount 228
	303	+	paid for such goods at such sale or the fair cash retail market value of 229
	304	+	such goods at the time of repossession, whichever is the greater, except 230
	305	+	as otherwise provided in subdivision (2) of this subsection or subsection 231
	306	+	(g) of this section. 232
	307	+	(2) Notwithstanding the provisions subdivision (1) of this subsection 233
	308	+	or subsection (g) of this section, the governing board of a Connecticut 234
	309	+	credit union may adopt a written policy establishing the manner in 235
	310	+	which such Connecticut credit union characterizes the proceeds of the 236
	311	+	resale of such repossessed goods. 237
	312	+	Sec. 9. Subsection (e) of section 36a-441a of the general statutes is 238
	313	+	repealed and the following is substituted in lieu thereof (Effective October 239
	314	+	1, 2025): 240
	315	+	(e) As used in this section, the term "net worth" means the retained 241
	316	+	earnings balance of the Connecticut credit union at the end of each 242
	317	+	dividend period, excluding the allowance for loan and lease losses 243
	318	+	account and, in the case of a Connecticut credit union designated by the 244
	319	+	National Credit Union Administration as a low-income credit union 245
	320	+	under 12 CFR 701.34, as from time to time amended, net worth includes 246
	321	+	any secondary capital account that is uninsured and subordinate to all 247
	322	+	other claims, including claims of creditors, shareholders and the 248
	323	+	National Credit Union Share Insurance Fund. Retained earnings shall 249
	324	+	consist of undivided earnings, as determined under generally accepted 250
	325	+	accounting principles, [regular reserves] and other appropriations 251
	326	+	designated by the commissioner or the National Credit Union 252
	327	+	Administration, or its successor agency, or by the governing board of 253
	328	+	Raised Bill No. 7083
314	329
315	330
316		-	LCO 10 of 10
317	331
318		-	account and, in the case of a Connecticut credit union designated by the 264
319		-	National Credit Union Administration as a low-income credit union 265
320		-	under 12 CFR 701.34, as from time to time amended, net worth includes 266
321		-	any secondary capital account that is uninsured and subordinate to all 267
322		-	other claims, including claims of creditors, shareholders and the 268
323		-	National Credit Union Share Insurance Fund. Retained earnings shall 269
324		-	consist of undivided earnings, as determined under generally accepted 270
325		-	accounting principles, [regular reserves] and other appropriations 271
326		-	designated by the commissioner or the National Credit Union 272
327		-	Administration, or its successor agency, or by the governing board of 273
328		-	the Connecticut credit union with the approval of the commissioner. 274
	332	+	LCO No. 5393 10 of 10
	333	+
	334	+	the Connecticut credit union with the approval of the commissioner. 254
329	335		This act shall take effect as follows and shall amend the following
330	336		sections:
331	337
332	338		Section 1 July 1, 2025 36a-435b
333	339		Sec. 2 July 1, 2025 36a-456b(a)
334	340		Sec. 3 July 1, 2025 36a-456a(e)
335	341		Sec. 4 July 1, 2025 36a-455a(2)(A)
336	342		Sec. 5 July 1, 2025 36a-458a(a)(3)
337		-	Sec. 6 July 1, 2025 36a-455a(17)
338		-	Sec. 7 July 1, 2025 36a-454b(a) to (d)
339		-	Sec. 8 July 1, 2025 36a-441a(e)
	343	+	Sec. 6 October 1, 2025 36a-455a(17)
	344	+	Sec. 7 October 1, 2025 36a-454b(d)
	345	+	Sec. 8 October 1, 2025 36a-785(d)
	346	+	Sec. 9 October 1, 2025 36a-441a(e)
340	347
341		-	BA Joint Favorable Subst.
	348	+	Statement of Purpose:
	349	+	To (1) define "loan officer" for the purposes of various statutes relating
	350	+	to credit unions, (2) establish that certain credit unions may receive
	351	+	certain payments from nonmembers, (3) redefine "member business
	352	+	loan" for the purposes of certain statutory provisions relating to credit
	353	+	union loans, (4) establish that the management of Connecticut credit
	354	+	unions may make certain charitable contributions and gifts, (5) establish
	355	+	that employees, insiders or members of the governing board of
	356	+	Connecticut credit unions may obtain extensions of credit with
	357	+	preferential rates, terms or conditions, (6) establish that a Connecticut
	358	+	credit union may adopt policies establishing the manner in which such
	359	+	Connecticut credit union characterizes the proceeds of the resale of
	360	+	repossessed goods, and (7) redefine "capital" and "net worth" for the
	361	+	purposes of various statutory provisions relating to credit unions.
	362	+
	363	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	364	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	365	+	underlined.]
342	366