An Act to Amend the Laws Regarding State-chartered Credit Unions
Maine Legislature, Session 131, LD 1921
Committee: Health Coverage, Insurance and Financial Services
Sponsors: JACKSON
Amends: 9-B MRSA §823, 9-B MRSA §842, 9-B MRSA §847, 9-B MRSA §856

Legislative Document
No. 1921
S.P. 783
In Senate, May 11, 2023
An Act to Amend the Laws Regarding State-chartered Credit 
Unions
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  9-B MRSA §823, sub-§1, as enacted by PL 1975, c. 550, §1, is amended to 
read:
1.  Sale of negotiable checks and money orders instruments.  A credit union may 
engage directly in the business of selling, issuing or registering checks or money orders 
negotiable instruments to its members.
Sec. 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 6 times per year, notice of such meeting meetings to be made in the manner 
prescribed in the bylaws. As set forth below, the special duties of the board of directors 
shall 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 such committee or membership officer so 
authorized shall submit 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 such other related information as the bylaws or board may require;
B.  To fix from time to time the maximum 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 of such a person or persons as may be necessary to 
carry on the business of the credit union; and to fix the compensation of such 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;
E.  To authorize the conveyance of property;
F.  To purchase a blanket bond in an amount which that is not less than an amount 
recommended by the superintendent, which shall 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 such 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 with provides that all loans are subject to ratification 
by the full 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 which that provides for the designation of a qualified individual to have charge 
of making investments, subject to ratification by the full 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;
O.  To establish and provide for compensation of loan officers appointed by the credit 
committee, and of 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 
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.
Sec. 3.  9-B MRSA §847, sub-§1, as amended by PL 2017, c. 143, §9, is repealed 
and the following enacted in its place:
1.  Grounds for expulsion.  A manager or chief executive officer of a credit union 
may expel from the credit union any member who:
A.  Has not carried out the member's engagement with the credit union;
B.  Has been convicted of a criminal offense;
C.  Neglects or refuses to comply with the provisions of this Part or the bylaws of the 
credit union;
D.  Has deceived the credit union or a committee of the credit union with regard to the 
use of borrowed money;
E.  Has substantially and repeatedly violated the official policies of the credit union;
F.  Has demonstrated dangerous, threatening or abusive behavior, as defined in rules 
adopted by the National Credit Union Administration, in such a way as to disrupt the 
operations of the credit union; or
G.  Has been convicted of fraud, attempted fraud, conspiracy to commit fraud or other 
illegal conduct in relation to the credit union, including illegal conduct in which an 
employee of the credit union was conducting business on behalf of the credit union.
Sec. 4.  9-B MRSA §847, sub-§4 is enacted to read:
4.  Expulsion policy; appealing an expulsion.  The manager or chief executive officer 
of a credit union shall inform an expelled member of the grounds for the expulsion, and the 
expelled member may appeal the expulsion to the board of directors.  A decision by the 
board regarding an expulsion is final.  By January 1, 2024, the board of directors of a credit 
union shall establish a written expulsion policy and expulsion appeals process that clearly 
informs members of a member's right to appeal an expulsion decision.  The credit union 
shall annually provide the expulsion policy and expulsion appeals process to members of 
the credit union.  
Sec. 5.  9-B MRSA §856, as enacted by PL 1975, c. 500, §1, is amended to read:
§856.  Loans to other credit unions
Subject to the approval of its board of directors, a credit union may make loans to other 
credit unions located in this State; provided that as long as the aggregate loans outstanding 
at any one time to any one credit union shall do not exceed 10% of the share capital and 
surplus of the lending credit union.
SUMMARY
This bill amends the laws governing credit unions in the following ways.
1.  It authorizes credit unions to engage in the business of selling, issuing or registering 
negotiable instruments, instead of checks or money orders as in current law.
2.  It changes from 12 to 6 per year the minimum number of meetings required for a 
credit union's board of directors.
3.  It adds grounds for expulsion of a credit union member and requires credit unions 
to establish a written expulsion policy and expulsion appeals process, which must be 
provided to credit union members annually.
4.  It removes the limitation that credit unions may make loans to only other in-state 
credit unions.