Democrats Patrick Murphy (Pa.) and Mazie Hirono (Hawaii) quickly added their names yesterday to the co-sponsors of the Credit Union Regulatory Improvements Act (H.R. 1537). Co-sponsors now total 123 and primary sponsor Congressman Paul Kanjorski (D-Pa.) makes 124 legislative backers.
"They're most interested in the capital structure," Kanjorski said of his credit union constituents he met with during the August recess. "They'd like to get that cleared up. I think they'd feel safer if they got a better capital structure." He explained that it is also an issue of parity with the other federally insured depository institutions.
The bill would create a risk-based capital framework for credit unions, increase the member business lending ceiling from 12.25% of assets to 20%, and allow non-multiple common bond credit unions to adopt underserved areas. It would also raise the minimum voter participation in conversions to mutual savings banks from a simple majority of those voting to a majority of 30% of the membership, require a special membership meeting, and prohibit incentives to vote.