SB1296 is a bill that proposes significant changes to the laws regulating credit unions in Arizona. It revises the rules for loan conditions, reducing the minimum retained interest rate from 10% to 5%, and alters the loan approval process for officials. The bill also updates the powers of credit unions, including the ability to purchase assets, use electronic voting, and impose prepayment penalties on non-personal loans. It changes the frequency of board meetings, modifies membership eligibility, and streamlines the suspension and expulsion processes for members and officials.
The bill amends various sections of the Arizona Revised Statutes, including the definitions of key terms like "branch office" and "credit union." It repeals section 6-512 and allows credit unions to expand their field of membership and purchase assets from other financial institutions. The bill also revises the conditions for loans, the rules for membership fees, expulsion, and board meetings, and specifies procedures for share accounts and multiple party accounts. Additionally, it changes the reporting requirements for loans to officials and the procedures for removing directors, officers, or committee members.
Statutes affected: Introduced Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543
Senate Engrossed Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543
Chaptered Version: 6-501, 6-506, 6-510, 6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564, 6-126, 6-543