PA 07-55—HB 7004

Banks Committee

AN ACT PROMOTING INVESTMENT WITH FEDERAL CREDIT UNIONS

SUMMARY: This act makes certain federal credit unions eligible for funds that the state treasurer may make available under a program to provide funding to community financial institutions. The law allows the treasurer to establish a program under which she may, based on cash availability, make available up to $100 million for investment with community banks and community credit unions. Prior law referenced the “community credit union,” definition contained in the community reinvestment statutes, which is a Connecticut credit union with assets between $10 million and $500 million and membership limited to people in a well-defined community, neighborhood, or rural district.

The act changes that definition of community credit union, for the act's purposes, to include federal and state credit unions meeting the same membership limit requirements and $500 million asset maximum as under prior law, but eliminating the $10 million asset minimum. It defines a state credit union in the same way as the law defines a Connecticut credit union, which is as a cooperative, nonprofit financial institution that (1) is organized under the Connecticut banking laws, (2) has a limited membership, (3) operates for the benefit and general welfare of its members, and (4) is governed by a volunteer board of directors elected by and from its membership.

EFFECTIVE DATE: Upon passage

OLR Tracking: SC: HN: JL: dw