SB27 Alabama 2017 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Quinton Ross
Democrat
Session: Regular Session 2017
Title: Credit unions, periodic examinations by Credit Union Administration, time frame extended, Sec. 5-17-8 am'd.
Summary: Extends the required examination period for Alabama credit unions from annually to at least every 18 months.
What This Bill Does
The bill requires credit unions to be examined by Alabama Credit Union Administration staff at least once every 18 months, instead of every 12 months. It keeps the annual reporting requirement (due by January 31) and adds a $5 per day penalty for late reports. It strengthens the regulator's enforcement tools, including suspension of operations, revocation of the certificate, cease-and-desist orders, and conservatorship powers, and it allows emergency actions like mergers or asset purchases to protect members, with related costs paid from the credit union’s assets.

Who It Affects
Alabama state-chartered credit unions will be subject to examinations at least every 18 months and must continue annual reporting, with potential penalties and enforcement if they fail to comply or become insolvent.
Credit union members and the general public may experience temporary service disruptions or changes in operations if a credit union is suspended, placed under conservatorship, or involved in mergers or asset purchases during enforcement or emergency actions.

Key Provisions
Examination frequency changed from at least annually to at least every 18 months for credit unions.
Credit unions must still report annually by January 31; delinquency penalties of $5 per day apply.
Regulator's enforcement powers are expanded to include suspension of operations, revocation of certificate of authority, cease and desist orders, and conservatorship, with related procedures.
Emergency actions allowed: involuntary mergers or asset purchases to protect the credit union and its members; costs paid from the credit union's assets; includes appointing temporary boards and special agents; effective date is the first day of the third month after passage.

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