Alabama Credit Union Act Fine Tuned

During the most recent Legislative session, Alabama Governor Kay Ivey signed into law an update to the state’s credit union act.

The first of five new provisions expands the supervisory committees of Alabama credit unions, which had previously been limited to three members. Now the law calls for “no less than three” members.

Another provision allows a credit union to pay for reasonable and proper travel expenses for a board member, plus one guest, if that board member was on official credit union business – and not be considered compensation.

- Sponsor -

The other three changes were more procedural. First, the Alabama Credit Union Administration asked the state legislature to amend the law to allow the state credit union regulator to appoint the National Credit Union Administration as conservator of a credit union. The second change increased the number of days for meeting notice in the case of a merger, while the third clarified language to expressly allow credit union volunteers to serve on the Alabama Credit Union Administration’s board of directors. That board currently is comprised of credit union officers, CEOs and other upper management. All are appointed by the governor and confirmed by the state senate.

The latest Alabama business news delivered to your inbox