HB5755 Summary

• Amendments to credit union articles of incorporation or bylaws may be approved by the board of directors (requiring two-thirds approval) in addition to member approval, with the Secretary having 60 days to approve or disapprove any amendments.

• Board of directors may fill director and committee vacancies by appointment from credit union members, with a requirement to fill vacancies reducing the board below the statutory minimum within 90 days or by the next annual meeting.

• Credit committee, board of directors, or chief management official may appoint a credit manager to approve or disapprove loans, with authority to appoint loan officers subject to board-prescribed limitations.

• Prepayment penalties on loans are prohibited except for waived third-party charges on closed-end credit transactions prepaid within 36 months, open-end credit plans terminated within 36 months, or yield maintenance fees on business loans.

• Establishes "network credit union" structure allowing two or more merging credit unions to operate as divisional units under one surviving legal entity, with divisional advisory boards and chief management officials while maintaining consolidated supervision and governance at the network level.