The bill, S. 409, is a joint resolution introduced by the Senate Banking and Insurance Committee to approve new regulations set forth by the State Board of Financial Institutions regarding the terms and conditions for state-chartered credit unions to make adjustable-rate mortgage (ARM) loans. Specifically, it approves Regulation Document Number 5293, which was submitted to the General Assembly in accordance with Article 1, Chapter 23, Title 1 of the South Carolina Code of Laws. The resolution will take effect upon the Governor's approval.

Additionally, the State Board of Financial Institutions proposes to repeal Regulation 15-51, as the current state law provides greater flexibility for credit unions. This change aims to streamline the regulatory framework governing ARM loans for state-chartered credit unions, enhancing their ability to operate within the financial market. The drafting notice for these changes was published in the State Register on June 28, 2024, followed by the proposed regulation on August 23, 2024.