Creating Influence

Credit Union Task Force Meets with DBF to Discuss Changes for Future

On July 12th the Georgia Credit Union State Law Review Task Force met with the Department of Banking and Finance to identify and analyze potential changes to credit union law and regulation. This Task Force was organized to help pursue improvements to ensure a strong state charter option, remove compliance burdens, and be engaged with the Department in a proactive, meaningful way to grow understanding on both sides of the table. Comprising credit unions from around the state, this meeting was the opportunity for dialogue to discuss ideas, insight and traction for progressive changes, and look for avenues to advance the state charter now and in the future. Topics addressed in the meeting with the Department included:

  • Analyzing the legislative environment and opportunity for credit unions;
  • Exploring options for regulations surrounding charitable donation accounts;
  • Identifying unnecessary red tape surrounding member verification requirements;
  • Discussing how law could (or should) be clarified regarding director and officer liability;
  • Reviewing credit union law and regulations for clarification on specific employee benefits products;
  • Pursuing additional revisions to regulations and/or law surrounding leasing to create the possibility for credit unions to lease space;
  • Debating potential solutions to an upcoming change to Financial Accounting Standards Board rules – the soon to be requirement of the capitalization of leases, and what the Department can do to help in their view of fixed assets;
  • Discussing pending changes to rules surrounding assets acquired – specifically “other real estate”/debts previously contracted through foreclosure (or in lieu of foreclosure), and
  • Exploring other ideas of how capital can, should or could be treated in the future.

Next steps are to finalize language for potential changes to the Department for their consideration, and potentially incorporate positive changes into legislation (if pursued). This is the second year of this formal task force, which has the mindset not of creating new regulation or law for the sake of it, but rather promoting enhancements to credit union law and/or regulation that could be beneficial to the industry and the members it serves. Our sincere thanks to the credit unions on the Task Force, and to the Department for the open dialogue and desire for credit unions to be an active part of the process.

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