Kansas and Washington Update CU Acts

Two states, Kansas and Washington, have passed legislation updating their credit union statutes.

In Washington-state, Governor Jay Inslee signed into law House Bill 1247.

The bill permits Washington-state credit unions to hold virtual special membership meetings, amends the duties of a credit union's supervisory committee, modifies field of membership to include groups that are either partially or wholly outside the state, grants Washington-state credit unions parity with out-of-state credit unions, and expands the type of securities that credit unions can invest,

The law becomes effective on July 28, 2019.

The Kansas House and Senate approved a bill (HB 2101) that would update state credit union statutes.

The bill updates several definitions and eliminates outdated or duplicate language.

The Bill also establishes a maximum loan amount as 10 percent of assets, clarifies the duties of a credit union's board, and removes the requirement that investments in corporate credit unions must not exceed 25 percent of a credit union's shares, undivided earnings, and reserves.

In addition, the bill no longer requires the written approval of the Administrator to purchase, lease, hold, or rent real estate in excess of 5 percent of a credit union's shares, undivided earnings, and reserves.

Governor Laura Kelly signed the bill into law.