COLUMBIA, S.C. -- A bill to update South Carolina's Credit UnionAct is on its way to Governor Mark Sanford's desk.

The bill (S. 235) clarifies that the credit union may open andclose branches as determined by its board of directors; permit useof a loan officer instead of a credit committee; require creditunion bylaws to establish membership and a member's right to vote,obtain loans or hold office; upping the maximum maturity formortgage loans from 30 to 40 years; includes an "organization" aspotential deposit account holder, permits the purchase of propertyfor future expansion with approval of the Board of FinancialInstitutions; clarifies that state incidental powers cannot exceedthose of federal credit unions; increases from 100 to 250 themaximum number of members in a group that may be added via "fileand serve" process while eliminating that the letter must indicateno other credit union is serving the organization; changes themaximum loan-to-value ratio from 85% to the maximum allowed forfederal credit unions; and modifies the certified appraisalrequirement on loans of $50,000 or more to the maximum allowed forfederal credit unions, while requiring inspection by a credit unionappointed individual and evidence of value on file for those belowthat maximum.

"We appreciate the many people involved in moving this billthrough, including league staff, Joyce Hearn and Dwight Cauthen,and Eric Jenkins and Buck Holland, who represented credit unionsduring committee hearings," SCCUL Executive Vice President SteveFowler said. "We will ask credit unions to be part of theGovernor's signing and to thank elected officials for helpingmodernize the State Credit Union Act and bring parity among stateand federal charters."