SB371 Summary

• Extensively revises Chapter 17 of Title 5 to regulate state credit unions, transferring all credit union authority from the State Banking Department to the Alabama Credit Union Administration.

• Authorizes the board of directors (rather than two-thirds of members) to expel credit union members for cause, including policy violations or inappropriate behavior.

• Establishes civil penalties of $500 per day (maximum $50,000) for unauthorized use of the term "credit union" in business names or advertising.

• Allows the administrator to annually fix operating assessments on credit unions to fund the Credit Union Administration and permits private insurance carriers as an alternative to federal account insurance.

• Provides for conservatorship orders enabling the administration to take possession of insolvent credit unions, merger or consolidation procedures, and sharing of examination information with federal agencies.