SB212 Alabama 2014 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2014
Title: Credit Unions, Credit Union Administration, supervision and regulation of credit unions further provided for, fees, Secs. 5-17-3, 5-17-6, 5-17-7, 5-17-8, 5-17-11, 5-17-15, 5-17-16, 5-17-19, 5-17-22, 5-17-45, 5-17-56 am'd.; Secs. 5-17-25 to 5-17-28, inclusive, 5-17-49, 5-17-53, 5-2A-100 to 5-2A-103, inclusive, repealed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: SB212 would overhaul Alabama's state credit union regulation by moving oversight to the Alabama Credit Union Administration, expanding penalties and powers, adjusting fees, and broadening rules on deposits, insurance, and information sharing.
What This Bill Does
If enacted, it shifts regulation from the Bureau of Credit Unions to the Alabama Credit Union Administration and adds civil penalties for misusing the term 'credit union.' It lets the board expel members (instead of requiring two-thirds of members) and revises operating fees and annual assessments to fund the regulatory body. It also strengthens the Administration's power to take possession of troubled credit unions, outlines minor-deposit protections, survivorship and adverse-claims rules, allows private account insurance, and permits sharing information with federal regulators.

Who It Affects
State-chartered credit unions and their boards/directors/administrators, due to new penalties, expulsion authority, fee changes, conservatorship powers, and expanded regulatory capabilities.
Credit union members (including minors and their guardians/surviving spouses), because of revised minor-deposit rules, account-disposition rules on death, survivorship provisions, and changes to insurance requirements.

Key Provisions
Civil penalties for using the words 'credit union' in a name or advertising when not authorized; penalties up to $500 per day, max $50,000.
Board of directors may expel a credit union member by a majority vote after a hearing, replacing the previous requirement that two-thirds of members decide.
Annual operating fees and administrator-fixed assessments to fund the Alabama Credit Union Administration; includes late-payment penalties and a tiered fee schedule based on asset size.
Transfers of regulation, powers, and assets from the Bureau of Credit Unions to the Alabama Credit Union Administration; creation of a special fund for Administration expenses.
Enhanced powers to take possession and control of a state-chartered credit union (conservatorship), including procedures for hearings, cease-and-desist orders, and potential liquidation.
Deposits by minors with rules for ownership, withdrawal, and survivorship; protections and procedures upon death of a depositor.
Allowance for private insurance to insure member accounts; requirements and processes if traditional Title II insurance is canceled or not obtained.
Authority to share information with federal agencies and to enter supervisory agreements with federal and other regulators; expanded coordination with outside agencies.
Expanded regulation of technology and off-premises operations; permission process for expanded powers and potential inter-state regulatory cooperation and mergers.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Banks and Banking