HB500 Summary

• Extensively revises Chapter 17 of Title 5 to modernize regulation of Alabama state-chartered credit unions by the Alabama Credit Union Administration.

• Changes member expulsion procedures from requiring a two-thirds vote of members to allowing the board of directors to expel members for cause by majority vote, with written appeal rights.

• Authorizes the administrator to annually fix operating assessments on credit unions to fund the Credit Union Administration, replacing the previous examination fee system.

• Expands administrator authority to grant charters, take possession of insolvent credit unions, share information with federal agencies, and allows private insurance carriers for account coverage in addition to federal insurance.

• Increases deposit account thresholds from $5,000 to $10,000 for simplified disposition to surviving spouses or guardians, and clarifies minor deposit procedures and deposit account survivorship provisions.