SLS 19RS-398 ORIGINAL
2019 Regular Session
SENATE BILL NO. 126
BY SENATOR PRICE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CREDIT. Provides relative to credit union powers and procedures. (8/1/19)
1 AN ACT
2 To amend and reenact R.S. 6:315.1(A) and 659 and to enact R.S. 6:327(E), relative to credit
3 unions; to add credit unions to those financial institutions that may utilize abandoned
4 safety deposit box procedures; to provide relative to the transfer of certain deposits
5 to the surviving spouse or heirs upon the death of an intestate depositor; to allow
6 credit unions to expel members under limited circumstances; to provide terms and
7 conditions; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 6:315.1(A) and 659 are hereby amended and reenacted, and R.S.
10 6:327(E) is hereby enacted to read as follows:
11 §315.1. Transfer of small deposits; death of depositor; affidavits required; penalties
12 A. Upon the death of a depositor who dies intestate and who has deposits
13 standing in his name alone or jointly with a surviving spouse and heirs, if any, in the
14 total aggregate amount of twenty thousand dollars or less, in any depository financial
15 institution, such depository financial institution may transfer pay a sum not to
16 exceed twenty thousand dollars of such deposits to the surviving spouse and heirs,
17 if any, or to the heirs, if there is no surviving spouse, upon receipt of an affidavit
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 126
SLS 19RS-398 ORIGINAL
1 establishing jurisdiction and relationship. The affidavit shall also state that the
2 deceased depositor left no will, that the total aggregate amount on deposit subject to
3 transfer under this Section does not exceed twenty thousand dollars total funds
4 withdrawn do not exceed twenty thousand dollars from all depositories, and that
5 such facts are true and correct.
6 * * *
7 §327. Abandonment of safety deposit box
8 * * *
9 E. This Section shall also apply to federally insured credit unions.
10 * * *
11 §659. Expulsion and withdrawal of members
12 A.(1) At any regularly called meeting the members may, by a two-thirds vote
13 of those present, expel any member from the corporation for cause. A member may
14 withdraw from a credit union, as provided in this Chapter, by filing a written notice
15 of his intention.
16 (2) A credit union may expel a member for cause, pursuant to a written
17 policy adopted by its board of directors. This expulsion may occur solely by
18 board action, without the necessity of a meeting of the members. For the
19 purposes of this Section, cause includes conduct by the offending member that
20 caused a loss to the credit union, violated the membership agreement or any
21 policy or procedure adopted by the board of directors, or exhibited
22 inappropriate behavior such as physical or verbal abuse of other credit union
23 members or staff.
24 (3) Any person so expelled shall have the right to file a written request
25 to the board of directors to reconsider the expulsion.
26 B. All amounts paid in on shares of an expelled or withdrawing member with
27 any dividends credited to his share to the date of expulsion or withdrawal shall be
28 paid to the member, but only as funds for this become available and only after
29 deducting any amount due to the corporation by the member. All deposits and shares
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1 of an expelled or withdrawing member, with any interest accrued, shall be paid the
2 member subject to sixty days notice, and any amounts due to the corporation by the
3 member shall be deducted. The member when withdrawing shares has no further
4 right in the credit union or to any of its benefits, but the expulsion or withdrawal
5 does not relieve the member from any remaining liability to the corporation.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Morgan B. Robertson.
DIGEST
SB 126 Original 2019 Regular Session Price
Present law provides procedures relative to abandoned safety deposit boxes.
Proposed law adds credit unions to those financial institutions that may utilize the abandoned
safety deposit box procedures provided for in present law.
Present law provides that upon the death of a depositor who dies without a will, along with
an affidavit establishing jurisdiction and relationship, a depository financial institution may
transfer deposits to a surviving spouse or heirs, if the total aggregate amount on deposit is
$20,000.00 or less.
Proposed law removes the $20,000 cap on deposit and provides that payout shall not exceed
$20,000.
Present law provides that members may, by a two-thirds vote of those present, expel any
member from the corporation for cause.
Present law provides that a member may withdraw from a credit union by filing a written
notice of his intention.
Proposed law retains present law and further allows a credit union to expel a member for
cause without a meeting of the members, pursuant to a written policy adopted by the board
of directors.
Proposed law defines cause as conduct by the offending member that caused a loss to the
credit union, violated the membership agreement or any policy or procedure adopted by the
board of directors, or exhibited inappropriate behavior such as physical or verbal abuse of
other credit union members or staff.
Proposed law provides that an expelled member has the right to file a written request of
reconsideration.
Effective August 1, 2019.
(Amends R.S. 6:315.1(A) and 659; adds R.S. 6:327(E))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.