HARTFORD, Conn.–A bill that makes some big changes to state statutes regulating credit unions has been signed into law by Connecticut Gov. Ned Lamont.
House Bill 7083, now Public Act 25-37, made several changes affecting state-chartered credit unions, the Hartford Business Journal reported.
Those changes include:
- Allowing CUs to extend credit with preferential rates or terms to “insiders, employees, and board members if there is a written policy to do so and it will not result in financial loss.”
- Expanding the list of loans exempt from credit union business loan requirements.
Shifting, from a credit union’s governing board to its senior management, the authority to approve charitable contributions or gifts that fall below a certain threshold. - Removing regular reserves from being included in certain calculations of capital and net worth
- Allowing credit unions certified as Community Development Financial Institutions (CDFIs) to “accept nonmember deposits up to certain caps based on the credit union’s total assets.”
The bill also made minor technical changes, including specifying that a “loan officer” is someone who accepts loan applications or offers or negotiates the terms of personal, business or other loan products for or with the expectation of compensation or gain, but not someone who acts only as a loan processor or underwriter, according to the Business Journal.
Bank Opposition
During an earlier public hearing on the bill, the Connecticut Bankers Association (CBA) raised objections to the bill, particular language allowing credit unions to accept deposits from any nonmember, the Business Journal reported.
