Credit unions; conversion to a state mutual savings institution. (HB482)

Introduced By

Del. Mark Sickles (D-Alexandria)

Progress

√
 Introduced
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 Passed Committee
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 Passed House
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 Passed Senate
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 Signed by Governor
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 Became Law

Description

Credit unions and banks; mergers and consolidations. Authorizes a (i) state credit union to merge or consolidate with a bank and (ii) state bank to merge or consolidate with a federal or state credit union. Each of these mergers of consolidations is subject to the prior approval of the State Corporation Commission.   View Full Text »

Outcome

Bill Has Passed
View Bill's History

Comments

Daniel Morrisey writes:

A credit union is owned by its members. There are no separate stockholders that own the credit union. The reserves, undivided earnings and net income of the credit union is (or should be) used for the benefit of the members of the credit union. This capital or equity ownership of the credit union should not go to the stockholders of a for profit bank that acquires a credit union, which seems to be what will happen if this bill is passed as drafted.

Posted 25 months ago.
M Quinlan writes:

Mr Sickles has obviously been purchased by the for profit banking industry. This does no favors for the members of credit unions and in fact exposes them to the excesses of conventional banks.

Posted 25 months ago.
Daniel Morrisey writes:

There were signifcant changes to this bill prior to being passed in Committee. The bill that passed allows state chartered credit unions to conver to a mutual savings bank, with significant credit union member protections. This is identical to (or nearly identical to) that of federally chartered credit unions. The Virginia Credit Union League supports the changes.

Posted 24 months ago.