HB367 Alabama 2016 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2016

Title

Credit unions, modernize language regulating and provide parity with federal credit unions, Secs. 5-17-8.1, 5-17-60 added; Secs. 5-17-2, 5-17-4, 5-17-6, 5-17-7, 5-17-8, 5-17-10, 5-17-11, 5-17-12, 5-17-13, 5-17-19, 5-17-21, 5-17-22, 5-17-42, 5-17-45, 5-17-46, 5-17-47, 5-17-51, 5-17-52, 5-17-54, 5-17-55 am'd.

Summary

HB367 updates Alabama's credit union laws to modernize regulation, expand powers to match federal credit unions, and boost oversight by the Alabama Credit Union Administration.

What This Bill Does

HB367 would clarify and codify powers of credit unions, including loan purchases, borrowing capacity, mergers, and voluntary dissolutions, to provide parity with federal credit unions. It would give appellate rights to people affected when a credit union's operations are suspended. It would authorize involuntary mergers by the Alabama Credit Union Administration in certain extenuating circumstances and expand the administrator's investigatory and enforcement powers. It would modernize employee bonding (under the Alabama Division of Risk Management) and codify confidentiality of credit union affairs.

Who It Affects

• Credit unions operating in Alabama would gain expanded powers and new regulatory authorities under a centralized administrator.
• Credit union members and the public would gain appellate rights in suspension cases and stronger oversight plus confidentiality protections for credit union information.

Key Provisions

• Expanded powers for Alabama credit unions to engage in activities comparable to federal credit unions (loan purchases, borrowing, mergers, voluntary dissolutions, and offering federal-authorized products/services).
• Appellate rights for individuals affected by suspension of a credit union's operation.
• Authority for the Alabama Credit Union Administration to involuntarily merge a credit union into another credit union or financial institution in certain extenuating circumstances.
• Modernized bonding requirements: employees of the Alabama Credit Union Administration bonded under the Alabama Division of Risk Management.
• Grant of investigatory and enforcement powers to the Administrator (including examinations under oath, removal, cease-and-desist orders, conservatorship, and penalties).
• Codification of confidentiality for a credit union's conditions and affairs; restrictions on disclosure of examination information.
• Transfer of authority, assets, and personnel from the Bureau of Credit Unions/Superintendent of Banks to the Alabama Credit Union Administration; establishment of the Credit Union Board with governor-appointed members.
• Authority to expand technology-related powers and enter into supervisory agreements with other regulators (e.g., Federal Reserve, FinCEN, NCUA, FDIC) to modernize supervision and operations; formal regulatory processes and potential emergency regulations.

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

Subjects

Credit Unions