SB209 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Bill Holtzclaw
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: SB209 updates Alabama credit union law to expand powers, align with federal credit unions, and strengthen regulatory tools for oversight, mergers, and enforcement.
What This Bill Does
It clarifies and codifies key powers of credit unions, including loan purchases, borrowing capacity, mergers, and voluntary dissolutions to provide parity with federal credit unions. It gives the Alabama Credit Union Administration broader investigatory and enforcement powers, including conservatorship and the ability to involuntarily merge troubled unions or allow emergency actions. It adds appellate rights for people affected by a suspension of a credit union's operations, modernizes bonding for agency employees, and codifies confidentiality of credit union affairs.

Who It Affects
Credit union members in Alabama who would gain access to broader products and services and have appellate rights if a union is suspended.
Alabama- chartered credit unions, their boards, officers, and employees, plus the Alabama Credit Union Administration and related financial institutions, who would face expanded regulatory powers, governance requirements, and enforcement tools.

Key Provisions
Codifies and expands credit union powers to mirror federal credit unions (loan purchases, borrowing capacity, mergers, voluntary dissolutions) to allow broader products and services.
Authorizes involuntary mergers and emergency actions by the Administrator to protect members and assets of credit unions.
Provides appellate rights for individuals affected by suspension of a credit union's operations.
Modernizes bonding for employees of the Alabama Credit Union Administration by placing them under the Alabama Division of Risk Management.
Expands investigatory and enforcement powers for the Administrator, including oaths, examinations, removal, civil penalties, conservatorship, and temporary boards.
Codifies confidentiality of the conditions and affairs of credit unions and sets rules for allowed disclosures.
Transfers certain authority, assets, and functions from prior regulators (e.g., Bureau of Credit Unions) to the Alabama Credit Union Administration and clarifies funding and reporting structures.
Authorizes expanded powers for technology and off-premises operations with administrator permission and enables regulatory cooperation with federal/state authorities.

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