Connecticut State Capitol building in Hartford. Photo by Michael Marciano/ALM
Connecticut credit unions celebrated a major legislative victory following the passage of Public Act 25-37, a comprehensive modernization of the state’s credit union statutes. The law, signed by Governor Ned Lamont and set to take effect July 1, updates key financial definitions and expands operational flexibility for state-chartered credit unions.
“This legislation continues our relentless work to help credit unions compete fairly and grow responsibly, while meeting the evolving needs of members and their communities,” Bruce Adams, president/CEO of the Credit Union League of Connecticut, said. “We are listening to our credit unions who consistently ask for a more level playing field with their federally chartered counterparts.”
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Key provisions of the new law allow credit unions designated as Community Development Financial Institutions to accept non-member deposits up to capped thresholds based on total assets, a move aimed at expanding access to capital for underserved communities.
The law also exempts certain loans from the definition of “member business loans,” helping credit unions avoid burdensome limits when supporting local businesses. Additionally, the legislation revises the definitions of “capital” and “net worth” to better align with modern accounting standards, excluding regular reserves from specific calculations to reflect true financial strength.
Another significant change permits credit unions to offer preferential credit terms to insiders, employees and board members, provided a formal policy ensures no financial loss or conflicts of interest. The act also authorizes credit unions to make charitable contributions under specified limits without requiring full board approval.
Adams called the reform a “win for all Connecticut credit unions” that will enhance their ability to serve members and communities while keeping pace with their federally chartered peers.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
