SB 690

This bill makes various statutory and administrative rule changes related to

the operations of credit unions. Among the statutory changes, the bill does all of the

following:

1. Specifies that a credit union must maintain sufficient reserves to meet

anticipated withdrawals, commitments, and loan demand and must maintain at

least the level of reserves required by the National Credit Union Administration

(NCUA).

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