SB371 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2013
Title: Credit Unions, state, regulation by Alabama Credit Union Administration, Secs. 5-17-1 to 5-17-12, inclusive, 5-17-14 to 5-17-16, inclusive, 5-17-19, 5-17-22, 5-17-40, 5-17-41, 5-17-44, 5-17-45, 5-17-46, 5-17-48, 5-17-50 to 5-17-52, inclusive, 5-17-55, 5-17-56 am'd.; Secs. 5-17-25 to 5-17-28, inclusive, 5-17-49, 5-17-53, 5-2A-100 to 5-2A-103, inclusive, repealed
Summary: SB371 overhauls Alabama's state credit union regulation by creating a centralized Alabama Credit Union Administration with expanded chartering, enforcement, and financial rules for state credit unions.
What This Bill Does
It would revise Chapter 17 to give the Alabama Credit Union Administration broader power over chartering, assessments, and control of credit unions. It also adds penalties for misusing the term 'credit union,' shifts member expulsion authority to the board, and allows private insurance for accounts. The bill expands conservatorship and merger powers for endangered unions, clarifies director protections, extends deposits rules for minors and survivorship, and authorizes information sharing with federal agencies; it also repeals several existing sections and establishes new governance and staffing provisions.

Who It Affects
State-chartered credit unions and the Alabama Credit Union Administration will operate under a new regulatory framework, including chartering, funding (assessments), supervision, and enhanced enforcement powers.
Credit union members (including minors, survivors, and guardians) and account holders will be affected by new rules on deposits, survivorship, account claims, and protections (including potential private insurance) as well as changes to member expulsion and readmission processes.

Key Provisions
Creates the Alabama Credit Union Administration as the regulator and transfers authority from previous agencies.
Authorizes the Administrator to grant charters to state credit unions.
Imposes civil penalties for using the term 'credit union' inappropriately and enforces the prohibition through penalties and injunctions.
Grants the board of directors the power to expel members (instead of requiring two-thirds of the membership).
authorizes annual operating assessments to fund the Alabama Credit Union Administration.
Expands the Administration's power to take possession and control of a state credit union in insolvency or near insolvency, including conservatorship procedures.
Allows directors to be reimbursed for expenses and provides limited liability protections for directors.
Expands rules for deposits by minors and for disposition of accounts to survivors or guardians, including adverse claims handling; allows private insurance on accounts.
Makes it possible to consolidate or merge credit unions in danger of insolvency and outlines merger procedures.
Specifies qualifications for the administrator and expands authority to share information with federal agencies.
Provides for an assistant administrator under the Merit System and related staffing rules.
Repeals several existing sections (5-17-25 to 5-17-28, 5-17-49, 5-17-53, 5-2A-100 to 5-2A-103) and sets an effective date.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Banks and Banking