BIRMINGHAM, AL/TALLAHASSEE, FL, (June 18, 2014) -- Alabama Gov. Robert Bentley held a ceremonial signing of the update to the Alabama Credit Union Act on June 17. The Alabama Credit Union Association, an affiliate of the League of Southeastern Credit Unions (LSCU), along with several Alabama credit unions and the Alabama Credit Union Administration, attended the signing.
Gov. Bentley signed the Act in the historic Alabama State Capitol in the Old House Chamber in Montgomery. After signing the bill, Gov. Bentley thanked credit unions for their help in passing the important piece of legislation. HB 165, sponsored by Rep. Greg Wren (R-Montgomery) and Sen. Slade Blackwell (R-Mountain Brook), was passed this past legislative session and signed by the governor in April.
“This is the first piece of standalone credit union legislation passed by the Alabama legislature in more than 20 years,” said LSCU & Affiliates president/CEO Patrick La Pine. “The updates were much needed and really align credit unions more with other financial institutions while also strengthening the Alabama Credit Union Administration.”
The update to the Act provide credit union board members with insurance protection, limits board member liability, modifies the Alabama Credit Union Administration’s fees to make the state charter more affordable for some classes. The Act also adds protections for credit unions on accounts created by minors, and increases the liability protection on accounts of deceased members, as well as gives the state the authority to impose a $500-a-day penalty for anyone or any organization that fraudulently uses the words credit union in their name, title or in advertising.
The League of Southeastern Credit Unions & Affiliates represents 278 credit unions in Alabama and Florida with a combined total of $65 billion in assets and more than 6.5 million members. LSCU provides advocacy and regulatory information; education and training; cooperative initiatives (including financial education outreach); media relations and information; and business solutions. For more information, visit www.lscu.coop. Follow the League on Twitter at twitter.com/LeagueofSECUs or Facebook at facebook.com/LeagueofSoutheasternCreditUnions.