September 5, 2013
Based on recommendations from the Washington Model Act Subcommittee, the Association successfully ran and passed legislation which improved the Washington Credit Union Act in seven areas.
WHAT THE MEASURE DOES: Improves the Washington Credit Union Act in seven key areas:
- Created more flexibility for credit unions investing in real property by allowing up to six years for use of unimproved property, or three years for improved.
- Allowed credit unions to invest in mutual funds made up of securities already otherwise permitted for credit union investment.
- Clarified that a credit union need not divest itself of an investment if permissible when made, and the nature of the investment changes making it impermissible.
- Removed the requirement that a credit union board of directors meet on a monthly basis and allowed for a minimum of six meetings per year, at least one per quarter.
- Gave credit unions greater flexibility as to the timing requirements of calling a special membership meeting; extending the notice from no longer than 30 days, to no longer than 90 days.
- Removed the prohibition on board and committee compensation and gave the state regulator authority to conduct rulemaking concerning reasonable director compensation.
- Changed the merger vote requirement to a simple majority vote from the current two-thirds majority requirement. (Note: Due to a drafting error, this provision was not correctly changed. The Association intends to run a technical correction bill in 2014 and in the interim a Washington state-chartered credit union may invoke parity with the Federal Act, which was the intent of this change.)
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