League, state leaders collaborate on S.1107 to update SC Credit Union Act
Thursday, February 13, 2020
COLUMBIA, SC— After successful passage of S. 337 in 2018, which made substantial updates to the SC Credit Union Act, the League continues efforts to modernize and make improvements to the state act.
|CCUL President and CEO Dan Schline testifies before subcommittee on April 24, 2018, advocating for support of S. 337.
Following passage of S. 337 in 2018—which was opposed by the SC banking associations—the League has been working with S.C. Senate Banking & Insurance Committee Chairman Ronnie Cromer (R-Newberry), the SC Board of Financial Institutions, SC Commissioner of Banks Richards Green, SC State Treasurer Curtis Loftis, and banking associations to make additional changes to the state charter that will improve the business climate for credit unions.
Through many discussions, all stakeholders were able to come up with and agree upon non-controversial items. These efforts led to Senator Cromer introducing S. 1107, which updates both the banking charter and credit union act.
“We are pleased to have another opportunity to enhance the South Carolina charter and improve its viability as an option for the state’s credit unions," League President/CEO Dan Schline commented. "A primary role of League Advocacy is ensuring we have a strong dual-chartering system, and this bill is another step in the right direction. We appreciate the work of Chairman Cromer and Commissioner Green throughout the process.”
The updates S. 1107 makes to the credit union statute are as follows.
SECTION 12. Section 34-26-350(2) of the 1976 Code is amended to read:
"(2) A credit union may maintain and dispose of other service facilities, including automated terminals, at locations other than its principal office upon approval of the commissioner. The maintenance of such facilities must be reasonably necessary to furnish service to its members or potential members."
SECTION 13. Section 34-26-530 of the 1976 Code is amended to read:
The board of directors shall act upon applications for membership or appoint one or more membership officers to approve applications for membership under such conditions as the board prescribes. Persons wishing to join a credit union must do so by written application which shall be acted upon in accordance with credit union procedure. A person denied membership by a membership officer may appeal the denial to the credit union board."
SECTION 14. Section 34-26-640(A) of the 1976 Code is amended to read:
"(A) The board of directors shall meet as often as necessary and at least
monthly and at other times as is necessary quarterly."
SECTION 15. Section 34-26-645(13) of the 1976 Code is amended to read:
"(13) establish titles for all elected officers
and senior management positions; and"
SECTION 16. Section 34-26-1220 of the 1976 Code is amended to read:
"(1) A credit union incorporated under the laws of this State may be converted to a credit union organized under the laws of any state or under the laws of the United States, or a credit union organized under the laws of the United States or of any other state may convert to a credit union incorporated under the laws of this State.
(2) To effect such a conversion, a credit union must receive the approval of a
two-thirds majority of the members voting in accordance with the credit union's bylaws on the question of a charter conversion and upon the approval of the credit union's current and future regulator.
(3) The assets and liabilities of the predecessor credit union will vest in and become the property of the successor credit union subject to all existing liabilities against the predecessor credit union. Members of the predecessor credit union may become members of the successor credit union pursuant to this chapter."
For more information on South Carolina CCUL Advocacy, please contact Billy Boylston at firstname.lastname@example.org.