CA Governor Signs Credit Union State-Charter Bill

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Today, Gov. Jerry Brown signed Assembly Bill 2862, the California Credit Union League's sponsored bill that updates the California state credit union charter.

The bill includes five provisions to clean up the code and give state-chartered credit unions parity with federally-chartered credit unions. It was authored by California State Assembly Banking and Finance Committee Chair Monique Limon (D-Santa Barbara).

The new provisions of the law will take effect Jan. 1. They include:

  • 1) Allowing state-chartered credit unions to purchase and sell whole loans.
  • 2) Allowing investments in charitable donation accounts (CDAs).
  • 3) Clearly exempting credit unions from the California escrow law.
  • 4) Authorizing investments for employee benefits plan obligations without prior approval by the California Department of Business Oversight (DBO).
  • 5) No longer requiring savings capital structure policies.

Click here to read the full text of AB 2862!

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