Indiana CU bills introduced in state legislature

<p>INDIANAPOLIS – The Indiana Credit Union League is facing a short, three-month state legislative session to see three league-supported bills passed by the state legislature before it adjourns March 14. House Bill 1140 and Senate Bill 202 are identical bills that would amend the state’s field-of-membership law to allow credit unions to serve communities up to 250,000 people, instead of the current 35,000 limit. The bills would also permit persons who reside in or are employed in a community to be considered a qualified group to form a CU and change credit union real estate improvement loan requirements. The third bill introduced had not been assigned a number by press time. That bill would allow mutual savings banks to convert to a state credit union charter. All three bills have been referred to the Committee on Insurance and Financial Institutions in the respective Senate and House chambers. The Indiana credit union statute currently on the books was written in 1934. Millie Cox, vice president of government affairs for the Indiana Credit Union League said she was asked by a mutual savings bank last summer whether it was possible in the state for a MSB to convert to a credit union. While it is unlawful under current law for a mutual savings bank to convert to a SCCU charter, it is lawful for a SCCU to convert to a mutual savings bank charter. If the bills are not passed by then, they will have to be reintroduced when the legislature convenes in January 2003.</p>