Provides relative to credit union powers and procedures. (8/1/19)
The bill also clarifies the powers of credit unions to expel members under prescribed conditions. A credit union can expel a member for cause with a two-thirds vote of the members present at a meeting, or solely through board action based on policies adopted by the board. The definition of 'cause' includes actions that damage the credit union financially or violate established agreements, as well as inappropriate conduct towards other members or staff. This change provides credit unions with a more definitive framework for managing their membership and addresses behaviors that could jeopardize the institutional integrity.
Senate Bill 126 modifies existing regulations concerning credit unions in Louisiana. It introduces provisions that allow credit unions to handle the transfer of certain deposits upon the death of a depositor who dies intestate. Specifically, the bill permits credit unions to transfer deposits not exceeding twenty thousand dollars to the surviving spouse or heirs upon receiving an affidavit confirming that the deceased had no will and that the total aggregate amount on deposit does not exceed the threshold. This change aims to streamline the process of transferring small deposits after a member's death, thereby easing the burden on the surviving family members.
Overall sentiment surrounding SB 126 appears to be supportive, as the provisions are intended to benefit credit unions and their operational efficiency. Proponents argue that these amendments are necessary for modernizing the regulations governing credit unions and offer practical solutions for issues related to member succession and conduct. There is an underlying sentiment that the bill enhances the autonomy of credit unions while protecting the interests of their members.
Notable contention may arise surrounding the authority granted to credit unions for expelling members, as it centralizes decision-making power within the board of directors. Critics could view the lack of transparency in the expulsion process as a potential risk for unfair treatment of members. Furthermore, the threshold for the transfer of deposits may generate discussions about adequacy in safeguarding the rights of heirs and ensuring a fair process in the absence of a will.