SB209 Summary

• Clarifies and codifies powers of Alabama credit unions, including loan purchases, borrowing capacity (up to 50% of assets or combination of undivided earnings and reserves), mergers, and voluntary dissolutions to provide parity with federal credit unions.

• Authorizes the Alabama Credit Union Administrator to involuntarily merge insolvent or failing credit unions with other credit unions or financial institutions in emergency circumstances.

• Provides appellate rights for persons affected by suspension of credit union operations, with hearings required within 90 days of suspension order.

• Modernizes employee bonding provisions by requiring coverage through Alabama Division of Risk Management instead of individual bonds.

• Expands administrator investigatory and enforcement powers, including authority to examine records, compel testimony, and impose civil money penalties; codifies confidentiality protections for credit union examination reports and member information.