Credit union operations and modifying rules promulgated by the Department of Financial Institutions

2. Creates an exception to the requirement that the Office of Credit Unions in the Department of Financial Institutions conduct an examination of the records and accounts of each credit union at least once every 18 months, allowing, in lieu of this examination, the OCU to accept an examination conducted by the NCUA.

3. Removes a limit under current law on the amount that a credit union may make in donations and grants approved by the credit union's board of directors.

4. Creates provisions relating to director conflict of interest transactions, defined as a transaction with the credit union in which a director of the credit union has a direct or indirect interest. The bill specifies that a conflict of interest transaction is not voidable by the credit union solely because of the director's interest in the transaction if the transaction was fair to the credit union or if the material facts were disclosed or known and the transaction was authorized, approved, or ratified in the manner specified in the bill.

5. Provides a procedure under which a group of credit union members have a right to inspect and copy nonconfidential portions of the credit union's accounting books and records and the minutes of credit union proceedings.

6. Authorizes credit unions and the OCU to provide confidential examination reports to the credit union's attorneys, independent certified public accountants, or other consultants or advisers who have agreed in writing to maintain the confidentiality of the report.

7. Revises the contents of the oath of office that credit union directors, officers, committee members, and employees must take with respect to personal pecuniary interests and conflicts of interest.

8. Provides that a member expelled from a credit union may petition the board of directors in writing for reconsideration of the member's expulsion, but no longer has a right to a hearing.

9. Repeals a statutory provision authorizing ten or more credit unions, with the OCU's approval, to form the Credit Union Finance Corporation.

10. Repeals a statutory provision imposing a limit on the value of a building used for credit union operations.

The bill also makes the following changes to DFI's administrative rules:

1. The bill allows a credit union to provide written notice, instead of obtaining express or implied prior approval, before placing and operating an automated teller machine at a location away from a credit union office.

2. The bill removes loan officers from the prohibition against preferential treatment for loan transactions involving directors, executive officers, and credit committee members.