HB3698 Summary

• Allows credit union members to attend and vote at annual and special meetings through virtual means (conference telephone, internet, electronic transmission) if the board of directors approves by resolution, with members receiving notice and instructions at least 7 days before the virtual meeting.

• Permits credit unions to appoint one or more associate directors in an advisory capacity who must meet all director requirements but cannot vote or act as directors, and must sign confidentiality agreements.

• Changes director and committee member compensation to be set by the board according to written policies and procedures, with the Department able to address safety and soundness concerns using established standards rather than setting maximum rates.

• Increases the lending limit for loans to credit union organizations from 3% to 6% of paid-in capital and surplus, and authorizes credit unions to make loans to community development financial institutions and minority depository institutions up to 5% of capital and surplus.

• Expands credit union investment authority to include shares, stocks, or obligations of community development financial institutions and minority depository institutions (up to 5% of capital and surplus) and allows credit unions to use flexible annual periods ending on any month for conducting audits, with 120 days to deliver reports to the Secretary.