Credit unions; conversion to a state mutual savings institution. (HB482)
Introduced By
Del. Mark Sickles (D-Alexandria)
Progress
✓ |
Introduced |
✓ |
Passed Committee |
✓ |
Passed House |
✓ |
Passed Senate |
✓ |
Signed by Governor |
☐ |
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. Read the Bill »
Outcome
Bill Has Passed
History
Date | Action |
---|---|
01/12/2010 | Committee |
01/12/2010 | Prefiled and ordered printed; offered 01/13/10 10103603D |
01/12/2010 | Referred to Committee on Commerce and Labor |
02/04/2010 | Reported from Commerce and Labor with substitute (22-Y 0-N) (see vote tally) |
02/04/2010 | Committee substitute printed 10104528D-H1 |
02/09/2010 | Read first time |
02/10/2010 | Read second time |
02/10/2010 | Committee substitute agreed to 10104528D-H1 |
02/10/2010 | Engrossed by House - committee substitute HB482H1 |
02/11/2010 | Read third time and passed House BLOCK VOTE (98-Y 0-N) |
02/11/2010 | VOTE: BLOCK VOTE PASSAGE (98-Y 0-N) (see vote tally) |
02/11/2010 | Reconsideration of passage agreed to by House |
02/11/2010 | Passed House BLOCK VOTE (99-Y 0-N) |
02/11/2010 | VOTE: BLOCK VOTE PASSAGE #2 (99-Y 0-N) (see vote tally) |
02/12/2010 | Constitutional reading dispensed |
02/12/2010 | Referred to Committee on Commerce and Labor |
02/16/2010 | Impact statement from SCC (HB482H1) |
02/22/2010 | Reported from Commerce and Labor (15-Y 0-N) (see vote tally) |
02/24/2010 | Constitutional reading dispensed (40-Y 0-N) (see vote tally) |
02/25/2010 | Read third time |
02/25/2010 | Passed Senate (40-Y 0-N) (see vote tally) |
03/03/2010 | Enrolled |
03/03/2010 | Bill text as passed House and Senate (HB482ER) |
03/03/2010 | Signed by Speaker |
03/04/2010 | Impact statement from SCC (HB482ER) |
03/06/2010 | Signed by President |
04/07/2010 | G Approved by Governor-Chapter 230 (effective 7/1/10) |
04/07/2010 | G Acts of Assembly Chapter text (CHAP0230) |
Comments
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.
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.
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.