HB 5404 Summary

• Repeals detailed state-specific requirements for member business loans by Connecticut credit unions and replaces them with a requirement that such loans comply with federal law under 12 USC Section 1757a and 12 CFR Part 723.

• Allows the state commissioner to authorize member business loan programs for credit unions with less than $250 million in assets, provided authorization is no less restrictive than federal requirements under 12 CFR Part 723.

• Removes definitions of "associated member," "construction loan," "net worth," and "net outstanding member business loan balance" from state statute, as these terms are now governed by federal regulations.

• Makes technical amendments to cross-references in the definitions section, including updates to sections 36a-457b and 36a-3 regarding mortgage loans and real estate definitions.

• Takes effect October 1, 2018.