What HB 1582 Really Means for Washington State-Chartered Credit Unions

With Northwest Credit Union Association (NWCUA)-sponsored Substitute House Bill 1582 and Senate Bill 5302 flying through the Washington State Legislature, credit unions should begin to look ahead at what it will mean for them should Gov. Jay Inslee sign it into law.

The recommendations behind the bill were provided by the NWCUA’s Washington State Model Act Subcommittee and will make changes to Washington state-chartered credit unions’ corporate governance and investments.

Credit unions should be aware of the following changes:

  • A credit union will be able to invest in a mutual fund that is composed of investments and investment transactions that the credit union would be permitted to invest in;
  • For unimproved real property that the credit union has purchased for future expansion, the credit union will have six years to partially occupy the premises after initial investments. The Washington Department of Financial Institutions’ (DFI’s) Division of Credit Unions (DCU) will probably adopt rules regarding this change at a future date.
  • Most calls for special meetings will now have a longer time frame within which the meeting must be held.
  • Washington state-chartered credit unions’ boards of directors will be required to meet as few as six times a year, with at least one meeting falling in each quarter. Directors will still need to attend at least three-fourths of the board meetings or be removed from the board.
  • A Washington state-chartered credit union may reasonably compensate board and supervisory committee members for their service. The DCU will need to write rules to interpret this new section.

“This, of course, is good news for Washington credit unions,” said NWCUA Director of Compliance Services David Curtis. “We’ll know more about the effective date of these changes as the process continues.”

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Around the NW, Compliance, Events, NWCUA.