HB367 - Credit Union Modernization Summary

• Clarifies and codifies credit union powers including loan purchases, borrowing capacity, mergers, and voluntary dissolutions to achieve parity with federal credit unions.

• Provides appellate rights for persons affected by suspension of credit union operations and authorizes the Administrator to involuntarily merge insolvent or failing credit unions with other financial institutions in emergency situations.

• Modernizes bonding provisions for Alabama Credit Union Administration employees by requiring coverage under the Division of Risk Management instead of individual bonds.

• Grants the Administrator investigatory and enforcement powers including authority to examine witnesses under oath, compel document production, and impose civil penalties for false statements or violations.

• Codifies confidentiality protections for credit union examination reports and member information, with limited exceptions for regulatory agencies, the Credit Union Board, and other authorized parties.