SACRAMENTO, Calif. — A bill to modernize eight sections of the California code regarding credit unions was signed into law July 27.
California Governor Arnold Schwarzenegger signed the California Credit Union League-backed legislation that:
- Makes several changes to explicitly allow for nonmembers to act as co-borrowers on members' loans with the credit union.
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- Increases the dollar threshold for board approval from $1,000 to $25,000, and allows credit unions to approve fixed amounts for broad categories of donations.
- Authorizes credit unions to share investigation and examination reports with their own attorneys and auditors.
- Allows credit unions to participate in additional community organizations.
- Permits credit union executive committees to perform all duties designated by the full board of directors.
- Authorizes explicitly credit union boards of directors to approve reports of new membership.
- Authorizes, rather than mandate, that credit unions require 60-days' notice for a member to withdraw from membership.
"We applaud the Legislature, the Assembly Banking Committee, and its chairman for reforming California's credit union law, allowing these cooperative, financial institutions to operate more effectively in the marketplace," Bob Arnould, league senior vice president of government affairs, said.
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