ACUA Administrator Proposed Legal Revisions
Sarah Moore, administrator of the Alabama Credit Union Administration, proposed strengthening her ability to supervise and regulate state chartered credit unions well before she issued a cease and desist order to Alabama One.
The ACUA issued the order to Alabama One on April 2 and delivered it on April 23.
Alabama One has until May 3 to appeal the order to the ACUA and has already gone to court seeking an injunction to block it.
In November 2014, when Moore had only been the administrator for a little more than three months, she addressed a meeting of the League of Southeastern Credit Unions in Destin, Fla. LSCU represents credit unions in Alabama and Florida.
In her presentation, Moore recommended revising the Alabama Credit Union Act to remove the requirement the ACUA administrator first get the permission of the majority of the ACUA’s Advisory Board before bringing an administrative order against a credit union under its regulatory authority.
The seven-member ACUA Advisory Board currently consists of the ACUA Administrator, the CEOs of five state-chartered credit unions and one member from a credit union supervisory committee.
Moore’s proposed revision would rmake the Board of Advisors the appellate body for the administrator’s actions.
She also proposed allowing state chartered credit unions to pay their directors as a way of attracting and retaining board members with expertise to oversee credit unions, allowing credit unions and banks to merge more easily, and allowing the ACUA to take testimony under and compel testimony and documents during examinations.
A bill that would legislate some of those changes passed the Alabama House of Representatives on April 9. HB179 changed nomination procedures for new board members as well as the circumstances and procedures for board member removal.
However, the bulk of what Moore proposed in her presentation was not in the legislation.
Mike Bridges, vice president of the League of Southeastern Credit Unions, said the trade supported the legislation.