GREENLEAF PARITY BILL FOR STATE CHARTERED
CREDIT UNIONS MOVES
HARRISBURG—The Senate Banking and Insurance
Committee has approved Senate Bill 1222, a measure prime
sponsored by Sen. Stewart J. Greenleaf to provide
state-charted credit unions parity with federally-chartered
credit unions.
Under the bill, state-chartered credit
unions could engage in any activity permissible for a
federal credit union. Such activities would include
electronic financial services, financial counseling
services, loan-related products, and trustee/custodial
services. It would also enable state-chartered credit
unions to control, hold an interest in, or participate in a
credit union service organization.
In addition, the bill would permit
state-chartered institutions to expand their field of
membership in the same manner as that authorized under
federal law. The bill would allow a larger membership and a
more comprehensive definition of immediate family
eligibility for membership.
Prior to a state-chartered credit union
participating in any of the federally-approved activities,
30 days advance notification must be made to the State
Department of Banking. The department would have the
authority to limit or restrict proposed activities if they
would have a potential adverse impact on the credit union’s
solvency.
Greenleaf noted that nine other states,
including New York and New Jersey, have enacted similar
credit union parity legislation. He noted also that
the Pennsylvania General Assembly two years ago granted
state banks parity with federal banks.
Eighty-four of the 790 credit unions in the
commonwealth are state-chartered.
