An Act To Update the Statutes under Which Maine's Credit Unions Are Chartered
Maine Legislature, Session 128, LD 1055
Committee Amendment CA_A_H142 (House)
Amends: 9-B MRSA §445, 9-B MRSA §864

COMMITTEE AMENDMENT "A" to H.P. 738, L.D. 1055, Bill, "An Act To 
Update the Statutes under Which Maine's Credit Unions Are Chartered" 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. 9-B MRSA §445, sub-§6, as enacted by PL 1997, c. 22, §16, is amended 
to read: 
6. Notice required. A financial institution seeking to invest in one or more service 
corporations shall notify the superintendent in writing at least .W 30 days prior to such 
investment. A finanoial institution seeking to establish or aoquire one or more sel'vioe 
corporations shall seek authori'lation to do so in aocordanoe with the follo1tYing. 
A. If the servioes arc to be performed only for other finanoial institutions authori'led 
to do business in this State as defined in seotion 131, subseotion 17 A, the finanoial 
institution shall notify the superintendent in 1.vriting, at least IO days in advanoe, of its 
intent to establish or aoquire the service ool'poration. 
This notiee must contain 
information required by the superintendent. 
B. If the servioes are to be performed fol' the public as well as other financial 
institutions, the finanoial institution shall file an applioation in aocordanoe v1ith 
section 252. The superintendent may, in addition to tho oriteria set forth in section 
253, oonsidor the typo of institution. making application and the oompetitive effect of 
that ownership. 
An. application or notioe required by this subsection is not oomplete unless acoompanied 
by a fee to be oredited and used as provided in sootion 214.' 
Amend the bill in section 3 in paragraph Fin the first line (page 1, line 27 in L.D.) by 
inserting after the following: "membership" the following: 'in Maine' 
Amend the bill in section 5 in subsection 7 in the first line (page 2, line 12 in L.D.) by 
striking out the following: ''shall" and inserting the following: 'may' 
Amend the bill by striking out all of section 10 and inserting the following: 
Page I - 128LR0428(02)-1 
COMMITTEE AMENDMENT 
ft cf s. 
COMMITIEE AMENDMENT "A" to H.P. 738, L.D. l 055 
1Sec. 10. 9-B MRSA §864, sub-§2, as amended by PL 2005, c. 82, §11, is further 
amended to read: 
2. Limitations. A credit union may invest -l-G% 20% of its share oapital and surplus 
net worth in any service corporation only if: 
A. The service corporation is structured to limit the credit union's exposure to loss; 
and 
B. The service corporation primarily serves credit unions and the membership of 
affiliated credit unions. A service corporation formed after July 31, 1994 primarily 
serves credit unions and the membership of affiliated credit unions within the 
meaning of this paragraph if at least 75% of the services provided within this State 
are to credit unions and members of credit unions. 
The superintendent may approve an amount less than or in excess of -l-G% 20%, subject to 
such terms and conditions as the superintendent determines necessary. The aggregate 
investment of a credit union in all service corporations may not exceed 50% of its net 
worth.' 
Amend the bill in section 12 in subsection 5 in the last line (page 3, line 38 in L.D.) 
by striking out the following: 
111Q
and inserting the following: 1301 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
The amendment makes the following changes to the bill. 
1. It clarifies that the field of membership requirements apply to an out-of-state 
credit union's activities when doing business in Maine. 
2. It permits the adoption of rules relating to adequate levels of net worth for a credit 
union. The bill mandates the adoption of rules. 
3. It provides parity between banks and credit unions for the limits on investments in 
a single service corporation or in multiple service corporations. 
4. 
It changes the requirement for a credit union to provide prior notice to the 
Department of Professional and Financial Regulation, Bureau of Financial Institutions 
when investing in, acquiring or establishing a credit union service corporation from 10 
days to 30 days. 
5. It adds a provision to the bill so that banks follow the same procedures proposed 
for credit unions when investing in, acquiring or establishing service corporations. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/25/17 feac. 
LD 1055 
LR428(02) 
An Act To Update the Statutes under Which Maine's Credit Unions Are Chartered 
Fiscal Detail and Notes 
Fiscal Note for ~ill as Amended by C~mmi~tee Am~ndment 'A' (_ H -
Comnnttee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
I LfJj 
Any additional costs to the Department of Professional and Financial Regulation to adopt the changes in this bill are 
expected to be minor and can be absorbed within existing budgeted resources. 
LR0428(02) - Fiscal Note - Page 1 of 1