Credit unions; conversion to a state mutual savings institution. (SB440)

Introduced By

Sen. Dick Saslaw (D-Springfield)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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. Read the Bill »


Bill Has Passed


01/13/2010Prefiled and ordered printed; offered 01/13/10 10103602D
01/13/2010Referred to Committee on Commerce and Labor
01/20/2010Impact statement from SCC (SB440)
02/08/2010Reported from Commerce and Labor with substitute (15-Y 0-N) (see vote tally)
02/08/2010Committee substitute printed 10105117D-S1
02/10/2010Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/11/2010Read second time
02/11/2010Reading of substitute waived
02/11/2010Committee substitute agreed to 10105117D-S1
02/11/2010Engrossed by Senate - committee substitute SB440S1
02/12/2010Read third time and passed Senate (39-Y 0-N) (see vote tally)
02/16/2010Impact statement from SCC (SB440S1)
02/16/2010Placed on Calendar
02/16/2010Read first time
02/16/2010Referred to Committee on Commerce and Labor
02/23/2010Reported from Commerce and Labor (22-Y 0-N) (see vote tally)
02/25/2010Read second time
02/26/2010Read third time
02/26/2010Passed House BLOCK VOTE (96-Y 0-N)
02/26/2010VOTE: BLOCK VOTE PASSAGE (96-Y 0-N) (see vote tally)
03/05/2010Bill text as passed Senate and House (SB440ER)
03/05/2010Signed by Speaker
03/08/2010Impact statement from SCC (SB440ER)
03/08/2010Signed by President
04/10/2010G Approved by Governor-Chapter 372 (effective 7/1/10)
04/10/2010G Acts of Assembly Chapter text (CHAP0372)


Daniel Morrisey writes:

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.

Mary Barnes writes:

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.

Laura Dely writes:

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?

Daniel Morrisey writes:

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.