Hawaii Credit Unions Must Comply with State ElderFinancial Abuse Law

ALEXANDRIA, Va. — Federal credit unions located in Hawaii mustcomply with the requirements of the Hawaii Financial Abuse Act thatrequires federal credit unions to report suspected financial abuseof an elder, according to an NCUA legal opinion.

The Aug. 6 legal opinion letter (07-0745), addressed to MaryBeth Wong of the law firm Ashford & Wriston, LLP who made theinquiry on behalf of some credit unions in Hawaii, stated thatNCUA's regulations do not exempt credit unions from the law'srequirements and that federal consumer privacy laws do permit thedisclosures provided for in the state law.

Wong said that the credit unions were seeking clarification fromNCUA after a similar, but voluntary, state elder abuse law raisedissues in Wisconsin.

According to NCUA's letter, Hawaii state law requires financialinstitutions to report suspected financial abuse against an“elder,” someone age 62 or older. The suspected abuse must bereported to Hawaii's Department of Human Services. If the DHS doesnot have jurisdiction, the institution is required to then notifythe police.

The privacy provision of the Gramm-Leach-Bliley Act includes ageneral prohibition against disclosing nonpublic personalinformation about a member to a nonaffiliated third party unlessthe institution first provides the member notice and a “reasonableopportunity” to opt out and the member does not opt out. “NeitherGLBA nor the Federal Credit Union Act permit NCUA to preempt astate law that requires FCUs to disclose nonpublic personalinformation,” the federal regulator explained. “To the contrary,the requirement for notice to members and opting out do not applywhen FCUs disclose nonpublic personal information to protectagainst or prevent fraud, unauthorized transactions, claims, otherliability, or to comply with state law.”

Bloom Raskin Named New Commissioner of FinancialRegulation in Maryland

BALTIMORE — Sarah Bloom Raskin has been appointed the newMaryland commissioner of financial regulation, effective Aug.28.

“Sarah is bringing her vast experience and passion as a 'bankdoctor,' working with domestic and international institutions onpreventive maintenance, responding to problems and helpinginstitutions establish charters in states, to the department,”Maryland Department of Labor, Licensing and Regulation SecretaryThomas Perez said. “I look forward to Sarah joining the DLLR teamand continuing the tradition of professionalism and excellenceestablished by retiring Commissioner [Charles] Turnbaugh.”

Bloom Raskin was serving as managing director of PromontoryFinancial Group where she works with banks and other financialinstitutions on a wide range of regulatory, governance, ethics,consumer and other issues. In addition, she served as counsel tothe Senate Committee on Banking, Housing and Urban Affairs, underformer Senator Paul Sarbanes (D-Md.). She also served as a memberof the Consumer Council of the Maryland Attorney General underformer Attorney General Joe Curran.

Sarah graduated magna cum laude in economics from AmherstCollege and has a Juris doctor from Harvard Law School. Sarah livesin Takoma Park with her husband Jamie and their three children.

Navy Veteran Receives First SBA Patriot ExpressLoan

WASHINGTON — Matthew J. Lattig, a Navy veteran and smallbusinessman, was recently presented with a loan check for $350,000from the Small Business Administration and SunTrust Bank throughthe agency's new Patriot Express Pilot Loan Initiative.

Launched in June, the loan program assists veterans and membersof the military with starting or expanding small businesses. In thepast month, more than 400 lenders including more than 20 creditunions have been approved nationwide to make Patriot Express loansand approximately 50 loans have been approved since CharterAdvisory Partners' approval, according to SBA.

“We expect this first loan guarantee will be just one of manymore Patriot Express loans to America's service men and women whoare starting or expanding their businesses,” SBA AdministratorSteven Preston said. “This initiative builds on the more than $1billion annually in loans SBA guarantees for veteran-ownedbusinesses, and the counseling assistance and procurement supportit provides each year to more than 100,000 veterans,service-disabled veterans and Reserve members.”

Patriot Express loans may go up to $500,000 and qualify forSBA's maximum guaranty of up to 85% for loans of $150,000 or lessand up to 75% for loans above $150,000 to $500,000. For loans above$350,000, lenders are required to take all available collateral tosecure the loan and may obtain collateral for smaller loansdepending upon individual bank requirements.

Pictured in the photo are from left to right, Steven Preston,Administrator, SBA; Stephanie A. Watkins, SBA RegionalAdministrator; Congressman Frank Wolf (R-Va.); Fred Brennan,executive vice president, SunTrust Bank; Matthew Lattig, managingmember, Charter Advisory Partners, LLC; and Sen. Charles J. Colgan(D-Va.).

NCUA: Ga. Law on Check Cashing Fees Does Not Apply toFCUs

ALEXANDRIA, Va. — NCUA has pre-empted a Georgia state lawprohibiting charging fees to non-accountholders for cashing sharedrafts on federal credit unions in a recent legal opinion.

Federal credit unions must comply with state law unlessspecifically pre-empted, which it is in this case, according toNCUA Associate General Counsel Sheila Albin in legal opinion letter07-0743 to Georgia Banking and Finance Commissioner RobertBraswell. The letter was in response to a query by Georgia CreditUnion Affiliates attorney Richard Kessler.

“The Georgia law at issue, by its terms, prohibits a financialinstitution, including an FCU, from charging a fee for cashing acheck or share draft drawn on it…Amendments to the Act adopted in2006 grant explicit authority for FCUs to cash checks for personsin the field of membership “for a fee.” In addition, FCUs have“such incidental powers as shall be necessary or requisite toenable. . . [them] to carry on effectively the business forwhich…[they are] incorporated. NCUA regulations implementing theAct's authority expressly permit FCUs to determine the fees,charges and other matters affecting the opening, maintaining andclosing of a share, share draft or share certificate account andexpressly states that “[s]tate laws regulating such activities arenot applicable to federal credit unions.'”

Albin cited a recent federal court decision pre-empting the lawfor national banks as supporting NCUA's determination. “We concludeFCUs may cash checks drawn by a member on the FCU's account andpayable to a nonmember and charge the nonmember payee a fee becausethe Georgia statute discussed above is preempted by federal law,”the letter read.

NAFCU Nominates UNFCU, Truliant Attorneys for FedConsumer Advisory Council

ARLINGTON, Va. — NAFCU announced that it has nominatedtwo credit union officials to serve on the Federal Reserve Board'sConsumer Advisory Council.

NAFCU has recommended United Nations Federal CreditUnion's Vice President and General Counsel John Lewis, who alsoserves as the assistant secretary of the UNFCU Board and is theethics officer, to the council. UNFCU has $2.4 billion in assets,75,000 members, and provides a wide array of products and servicesto consumers.

NAFCU also nominated Joseph P Clark, general counsel forTruliant Federal Credit Union. Chartered in 1952, Truliant serves amembership of almost 200,000 with assets nearing $1.1billion.

“NAFCU strongly believes that each of these nomineeswill bring a unique credit union perspective to the council,” saidNAFCU President Fred Becker. “Coupled with their extensiveexperience with consumer financial services, community service andconsumer protection regulations, we believe both nominees would beextremely valuable contributors to the CAC.”

American Airlines Federal Credit Union General CounselFaith Anderson currently serves on the council with a term endingin October.

The CAC was established in 1976 to advise the FederalReserve Board on the exercise of its duties under the ConsumerCredit Protection Act and other financial services matters. Thecouncil is comprised of consumer, community and the financialservices representatives with 10 new members to be appointed tothree-year terms beginning January 2008.