North Carolina House Bill 410 - Credit Union Update

• Updates definitions and terminology throughout credit union statutes, including changing references from "Articles 14A to 14L" to "Articles 14A to 15A"

• Establishes civil penalty authority allowing the Administrator to assess penalties up to $500 for violations of credit union laws, with clear proceeds remitted to the Civil Penalty and Forfeiture Fund

• Restructures officer removal procedures to make removal effective immediately upon notice, with removed parties having 30 days to request a Commission hearing; Commission may overturn removal, uphold it, or modify it to a suspension

• Expands credit union membership eligibility to include individuals and families earning at or below federal poverty threshold and persons in North Carolina census tracts more than 8 miles from a bank branch

• Modernizes credit union powers including expanded financial services offerings (electronic transfers, custodial services, correspondent services) and simplified member expulsion procedures requiring written notice

• Becomes effective January 1, 2024