Credit unions; conversion to a state mutual savings institution. (SB440)
Introduced By
Sen. Dick Saslaw (D-Springfield)
Progress
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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 (i) a state credit union to merge or consolidate with a bank and (ii) a state bank to merge or consolidate with a federal or state credit union. Each of these mergers or consolidations is subject to the prior approval of the State Corporation Commission. View Full Text »
Outcome
Bill Has Passed
History
- 01/13/2010 Prefiled and ordered printed; offered 01/13/10 10103602D
- 01/13/2010 Referred to Committee on Commerce and Labor
- 01/20/2010 Impact statement from SCC (SB440)
- 02/08/2010 Reported from Commerce and Labor with substitute (15-Y 0-N) (see vote tally)
- 02/08/2010 Committee substitute printed 10105117D-S1
- 02/10/2010 Constitutional reading dispensed (39-Y 0-N) (see vote tally)
- 02/11/2010 Read second time
- 02/11/2010 Reading of substitute waived
- 02/11/2010 Committee substitute agreed to 10105117D-S1
- 02/11/2010 Engrossed by Senate - committee substitute SB440S1
- 02/12/2010 Read third time and passed Senate (39-Y 0-N) (see vote tally)
- 02/16/2010 Impact statement from SCC (SB440S1)
- 02/16/2010 Placed on Calendar
- 02/16/2010 Read first time
- 02/16/2010 Referred to Committee on Commerce and Labor
- 02/23/2010 Reported from Commerce and Labor (22-Y 0-N) (see vote tally)
- 02/25/2010 Read second time
- 02/26/2010 Read third time
- 02/26/2010 Passed House BLOCK VOTE (96-Y 0-N)
- 02/26/2010 VOTE: BLOCK VOTE PASSAGE (96-Y 0-N) (see vote tally)
- 03/05/2010 Enrolled
- 03/05/2010 Bill text as passed Senate and House (SB440ER)
- 03/05/2010 Signed by Speaker
- 03/08/2010 Impact statement from SCC (SB440ER)
- 03/08/2010 Signed by President
- 04/10/2010 G Approved by Governor-Chapter 372 (effective 7/1/10)
- 04/10/2010 G Acts of Assembly Chapter text (CHAP0372)
Comments
A credit union is a cooperative financial institution owned by its members. There are no separate stockholders. The reserves, retained earnings and net income of the credit union belongs (or should belong) to the members. It is inherently unfair to the member owners of the credit union for this capital or equity ownership to go to owners (stockholders) of a for profit bank, which seems to be what will happen if this bill is enacted.
My husband and I have belonged to the Virginia Credit Union for 30 years. We belong because of the credit union's status as a not-for-profit institution. Several years ago, my husband was the treasurer of a small non-profit organization. Since credit unions are just for individuals, he had to bank with BB&T; his small account was riddled with fees from the for-profit bank. It is unfair to allow not-for-profit organizations to be taken over by for-profit institutions. The banks already have enough ways to make profit without taking over credit unions.
This is horrible!! How did I not know about this bill and its House companion, HB 482?
Yikes! This is Plutocracy blatantly smacked in our faces. Currently I bank at a Credit Union, but if these bills pass, and become law, I will keep my money at home. And I would do everything I could to convince as many people as possible to do the same.
The banks may have felt a tweak from the little campaign called "Move Your Money" that encourages consumers to take their money out of the corporate behemoths that brought our country's economy to its knees, and deposit it in Credit Unions and Community Banks.
Big Banks must be asking "Are we there yet? Are we there yet? Do we have a plutocracy now?
The bill that passed is a very different substitute bill. The substitute, which was acceptable to Virginia credit unions, allows state chartered credit unions to convert to a Mutual Savings Bank - nearly identical to what a federally chartered credit union can do. This process has considerable protections for the rights of credit union members, and any conversion must be approved by a vote of credit union members.