Substitute House Bill No. 7083 seeks to modernize the credit union statutes in Connecticut by revising regulations related to nonmember payments, member business loans, charitable contributions, extensions of credit, and capital and net worth calculations. Key insertions include new definitions for terms such as "federal credit union," "insider," "loan officer," and "tax and loan account," which aim to clarify roles within credit unions. The bill also expands the definition of "immediate family member" and allows credit unions to accept payments from nonmembers under specific conditions, with limits based on the credit union's total assets. Additionally, it modifies the definition of "member business loan" to include loans for commercial purposes while excluding personal use loans.

The bill further streamlines existing language by deleting outdated terms and clarifying definitions, such as those for "branch," "capital," and "shared service center." It shifts the authority for approving charitable contributions from the governing board to senior management for smaller amounts, while imposing caps on contributions and requiring records of such transactions. Moreover, it mandates the adoption of a written conflict of interest policy for credit unions, particularly concerning transactions with insiders and their immediate family members. The changes are set to take effect on July 1, 2025, and are designed to enhance the operational flexibility of credit unions while ensuring compliance with regulatory standards.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 319:
File No. 822: