SC Wins Legislative Battle to Modernize CU Act, Brings Parity with Federals
COLUMBIA, S.C. -- A bill to update South Carolina's Credit Union Act is on its way to Governor Mark Sanford's desk.
The bill (S. 235) clarifies that the credit union may open and close branches as determined by its board of directors; permit use of a loan officer instead of a credit committee; require credit union bylaws to establish membership and a member's right to vote, obtain loans or hold office; upping the maximum maturity for mortgage loans from 30 to 40 years; includes an "organization" as potential deposit account holder, permits the purchase of property for future expansion with approval of the Board of Financial Institutions; clarifies that state incidental powers cannot exceed those of federal credit unions; increases from 100 to 250 the maximum number of members in a group that may be added via "file and serve" process while eliminating that the letter must indicate no other credit union is serving the organization; changes the maximum loan-to-value ratio from 85% to the maximum allowed for federal credit unions; and modifies the certified appraisal requirement on loans of $50,000 or more to the maximum allowed for federal credit unions, while requiring inspection by a credit union appointed individual and evidence of value on file for those below that maximum.
"We appreciate the many people involved in moving this bill through, including league staff, Joyce Hearn and Dwight Cauthen, and Eric Jenkins and Buck Holland, who represented credit unions during committee hearings," SCCUL Executive Vice President Steve Fowler said. "We will ask credit unions to be part of the Governor's signing and to thank elected officials for helping modernize the State Credit Union Act and bring parity among state and federal charters."