RALEIGH, N.C. — The North Carolina General Assembly has approved legislation that would modernize the state’s credit union laws and expand access to credit union services for residents living in underserved communities and banking deserts.
According to the Carolinas Credit Union League, the credit union provisions are included in Senate Bill 595, a broader legislative package that passed the North Carolina Senate last week and cleared the House on Tuesday. The measure now heads to Gov. Josh Stein for consideration.
The league said the legislation is the result of four years of collaboration among credit unions, lawmakers and other stakeholders.
One Key Provision
A key provision would allow state-chartered credit unions to serve North Carolinians whose incomes fall below the federal poverty line, as well as residents living in areas with limited access to financial services. League officials said the change will enable credit unions to expand their reach while continuing their mission of promoting financial well-being through their not-for-profit cooperative model.
“People who live in rural and underserved parts of North Carolina have dwindling financial services options,” Carolinas Credit Union League President and CEO Dan Schline said in a statement. “Credit unions, as not-for-profit cooperatives, have the right model and the will to serve them. This legislation will grant them permission to do so.”
Schline said credit unions across the state are grateful to the bill’s sponsors and others who contributed to the effort over several years.
The Updates
The legislation also includes a number of regulatory and operational updates, including:
- Modernizing portions of North Carolina’s credit union statutes that have not been substantially updated since the 1970s, including provisions allowing credit unions to maintain records electronically.
- Streamlining the process for state-chartered credit unions to obtain authority to engage in activities already permitted for federally chartered credit unions.
- Expanding and updating the authority of the North Carolina Administrator of Credit Unions, whose statutory powers also have remained largely unchanged since the 1970s.
The Carolinas Credit Union League said it worked closely with credit union leaders and legislative supporters throughout the legislative process to advance the measure.
