An Act to Amend the Laws Regarding State-chartered Credit Unions
Maine Legislature, Session 131, LD 1921
Committee Amendment CA_A_S542 (Senate)
Amends: 9-B MRSA §842

COMMITTEE AMENDMENT " ft " to S.P. 783, L,D. 1921, "An Act to Amend the
Laws Regarding State-chartered Credit Unions"
Amend the bill by striking out all of section 2 and inserting the following:
'See. 2. 9-B MRSA §842, sub-§2, as amended by PL 2003,c. 322, §§29 to 31, is
further amended to read:
2. Powers and duties. The board of directors shall manage the affairs, funds and
records of the credit union and shall meet as often as necessary, but not less than once a
month, notice of sueh the meeting to be made in the manner prescribed in the bylaws. The
superintendent may approve fewer meetings upon a credit union's demonstration of good
cause. As set forth below, the special duties of the board of directors sbaU-be are:
A. To act upon applications for membership, or to appoint a membership committee
of one or more membership officers from among the members of the credit union, other
than the treasurer, an assistant treasurer or loan officer, who may be authorized by the
board to approve applications for membership under such conditions as the board may
prescribe; provided, as long as that sueb committee or membership officer se
authorized shall sybeut submits to the board at each monthly meeting a list of approved
or pending applications for membership received since the previous monthly meeting,
together with soeb other related information as the bylaws or board may require;
B. To fix from time to time the maxunum amount, both secured and unsecured, which
that may be loaned to any one member, except as limited by chapter 85, and to establish
a written loan policy pursuant to section 851, which must be reviewed and ratified at
least annually;
C. To authorize the employment ofsyeha person or persons as may be necessary to
carry on the business of the credit unionf and to fix the compensation of sueh those
employees, including the treasurer;
D. To borrow money to carry on the functions of the credit union, subject to the
limitation set forth in section 822;
COMMITTEE AMENDMENT
/| " to S.P. 783, L.D. 1921 (^5T^.)
COMMITTEE AMENDMENT " f\ " to S.P. 783, L.D. 1921
E. To authorize the conveyance of property;
F. To purchase a blanket bond in an amount whiefe that is not less than an amount
recommended by the superintendent, which shaU must be required of the treasurer and
of each other officer and other employee having custody of funds or property;
G. To limit the number of shares that may be owned by one member or nonmember
as provided in section 817, and swh that limitation must be applied uniformly;
H. To have charge of the investment of funds and to establish a written investment
policy pursuant to section 861, which must be reviewed and ratified at least annually;
I. To perform such other duties as the members may from time to time require;
J. To appoint a supervisory committee of not less fewer than 3 members, not more
than one member of which may be a director. If the duties of the supervisory committee
are conducted by an independent public accountant and the board has contracted for an
annual audit by an independent public accountant pursuant to section 844, a
supervisory committee need not be appointed;
K, To appoint a credit committee of not less fewer than 3 members? or to establish a
written loan policy which that provides for the designation of one or more loan officers
in lieu of a credit committee and witik provides that all loans are subject to ratification
by the fall board;
L. To appoint an executive committee, when the bylaws so provide, consisting of not
less fewer than 3 members of the board with authority to invest funds or borrow in the
name of the credit union, except that the board may establish a written investment
policy whiefe that provides for the designation of a qualified individual to have charge
of making investments^ subject to ratification by the fall board;
M. To suspend any or all members of the credit and supervisory committees for failure
to perform their duties;
N. To fill vacancies occurring between annual meetings in the board of directors and
in the credit committee and supervisory committee until the election or appointment
and qualification of their successors;
0. To establish and provide for compensation of loan officers appointed by the credit
0 committee^ and ef for auditing assistance requested by the supervisory committee;
P. To designate a depository or depositories for the funds of the credit union;
Q. To declare dividends in the way and manner provided in the bylaws and in
accordance with this Part;
R. To determine from time to time the rate of interest consistent with the laws of this
State which shall that must be charged on loans; and to determine from time to time
6 and the amount of interest rebate and the interval on which such rebate,, if any, shall be
is computed; and
S. To perform or authorize any action consistent with this Part not specifically reserved
by the bylaws for the members.'
Amend the bill m section 4 in subsection 4 in the 4th line (page 3, line 11 in L.D.) by
striking out the following; "2024" and inserting the following: '2025'
Page2-131LR0714(02)
COMMITTEE AMENDMENT
^Jwl> COMMITTEE AMENDMENT " ^ " to S.P. 783, L.D. 1921^"(
^
Amend the bill in section 5 in §856 in the first indented paragraph in the 2nd line (page
3, line 19 in L.D.) by insertmg after the following: "feat" the followmg: 'and to credit unions
organized pursuant to provisiQns of federal law or credit unions oreanized under the laws
of another state'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment makes the following changes to the bill.
1. The bill reduces the minimum number of board meetmgs for a credit union from 12
to 6 per year. The amendment retains the statutory provision that requires the board of
directors of the credit union to meet once a month. The amendment allows the
Superintendent of Financial Institutions within the Department of Professional and
Financial Regulation to reduce the number of required meetings for good cause.
2. It retains the provision in the bill that removes the limitation that credit unions may
make loans only to other in-state credit unions but makes technical changes to clarify the
language used in the bill.
3. It updates the date by which a credit union must adopt a written expulsion policy.
COMMITTEE AMENDMENT