An Act To Update the Statutes under Which Maine's Credit Unions Are Chartered
Sec. 1. 9-B MRSA §332, sub-§2-A, ¶A, as enacted by PL 1999, c. 218, §12, is amended to read:
Sec. 2. 9-B MRSA §335, sub-§1, as amended by PL 1997, c. 398, Pt. E, §4, is further amended to read:
Sec. 3. 9-B MRSA §816, sub-§1, ¶F, as enacted by PL 1983, c. 373, §1, is amended to read:
Sec. 4. 9-B MRSA §831, sub-§3, as enacted by PL 1975, c. 500, §1, is amended to read:
Sec. 5. 9-B MRSA §831, sub-§§4 to 7 are enacted to read:
Sec. 6. 9-B MRSA §832, as amended by PL 2003, c. 322, §§20 and 21, is repealed.
Sec. 7. 9-B MRSA §833, sub-§1-A, as enacted by PL 2003, c. 322, §23, is amended to read:
Sec. 8. 9-B MRSA §847, sub-§1, as enacted by PL 1975, c. 500, §1, is amended to read:
Sec. 9. 9-B MRSA §863, sub-§2, as enacted by PL 1975, c. 500, §1, is amended to read:
Sec. 10. 9-B MRSA §864, sub-§2, ¶B, as amended by PL 1993, c. 655, §1, is further amended to read:
Sec. 11. 9-B MRSA §864, sub-§3, as amended by PL 1993, c. 99, §3, is repealed.
Sec. 12. 9-B MRSA §864, sub-§§4 and 5 are enacted to read:
This bill updates the charter provisions for state-chartered credit unions in the following ways:
1. Putting state-chartered credit unions in line with their federally chartered counterparts by repealing the guaranty fund requirements and allowing dividend payments when the credit union establishes and maintains adequate levels of net worth. Currently, state-chartered credit unions must have a percentage of gross income set aside before there may be a dividend payment to a member. The bill directs the Superintendent of Financial Institutions to adopt rules regarding the composition of net worth, the levels that must be maintained and procedures that must be followed to restore net worth if it falls below the minimum standard to continue to safeguard credit union members;
2. To ensure safe and smooth day-to-day operations of state-chartered credit unions and consistent with the trend followed by credit unions in other states, allowing the manager or chief executive officer of a credit union, rather than the board of directors, to expel a member for certain types of conduct. The expelled member must be informed of the grounds for the expulsion and may appeal the expulsion;
3. Increasing the percentage of total surplus that state-chartered credit unions may invest in real estate and fixed assets from 50% to 60%; and
4. To bring Maine's state charter in line with its federal counterpart, directing the superintendent to consider federal laws and regulations when determining whether a new credit union service corporation primarily serves a credit union or credit union members and removing a general reference to a statutory provision that in itself is not specific to credit unions and instead incorporating language from that provision that requires credit unions to notify the superintendent in writing 10 days prior to organizing as or investing in a credit union service corporation and vesting the superintendent with the power to prescribe the manner and form of the credit union service corporation's books and accounts.