DFI, NWCUA and Washington Credit Unions Collaborate Reviewing Model Bylaws
July 18, 2013
July 18, 2013
On July 2, 2013, Linda Jekel the director of credit unions at the Washington Department of Financial Institutions (DFI) announced a work group to review the model bylaws for Washington State chartered credit unions. The purpose of the work group was to comment on draft housekeeping changes to ensure the model bylaws are in compliance with all Washington Credit Union Act amendments since 2001, including the most recent amendments in Senate Bill 5302 (2013 c 34), effective July 28, 2013.
The model bylaws are offered as a resource for credit unions and potential organizers of new credit unions. The Washington Credit Union Act (Act) does not require a Washington State chartered credit union to adopt the model bylaws. While the bylaws must conform to the provisions of the Act, there are many areas that can be tailored to suit individual credit union practices.
Members of the work group included Northwest Credit Union Association (NWCUA) staff as well as staff from Washington credit unions representing wide-ranging asset classes. Also participating in the workgroup were representatives from the DFI. The work group concurred with the house keeping changes proposed by the DFI to bring the bylaws into compliance following the passage of SB 5302, but also addressed other areas unrelated to the recent statutory update.
On July 12, 2013, the Division of Credit Unions issued the Revisions to the Washington Credit Union Act bulletin (No. B-13-10) detailing changes to the Act and the corresponding bylaw updates that a credit union might adopt if they plan to exercise the new powers granted with the passage of SB 5302.
Director Jekel agreed that a thorough review of the model bylaws should be undertaken to identify areas that are unrelated to the 2013 legislation, such as the field of membership (FOM) section to comply with the FOM rule revised in 2002. The NWCUA volunteered to form a committee to modernize the model bylaws and will work with Director Jekel to provide Washington State chartered credit unions the most up to date governance and best practices available.
The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions about these or any regulatory issues, please contact Director of Regulatory Advocacy John Trull at firstname.lastname@example.org, or at 503.350.2209.