Substitute House Bill No. 7083 seeks to modernize the Connecticut credit union statutes by revising definitions and operational guidelines related to nonmember payments, member business loans, charitable contributions, and capital requirements. Key insertions include a broader definition of "immediate family member," the introduction of terms like "insider" and "loan officer," and an expanded definition of "shared service center." The bill also repeals Section 36a-435b and subsection (a) of section 36a-456b, replacing them with updated language that clarifies terms such as "tax and loan account," "capital," and "membership share." These changes are designed to enhance the operational framework for credit unions in Connecticut, with an effective date set for July 1, 2025.

Additionally, the bill allows credit unions to extend credit to insiders and employees at preferential rates under a written policy, shifts the authority for approving charitable contributions from the governing board to senior management for smaller amounts, and exempts certain loans from business lending requirements. It also removes "regular reserves" from capital calculations and permits community development financial institutions to accept nonmember deposits up to $1.5 million. Overall, these amendments aim to provide credit unions with greater operational flexibility while ensuring compliance with regulatory standards.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 319: