State Charter Update Passed Into Law

Last week, Governor Mills signed LD 1921, “An Act to Amend the Laws Regarding State-Chartered Credit Unions,” into law. This bill, sponsored by Senate President Troy Jackson, was brought forward by the League to modernize some of the language and powers of state-chartered credit unions.

There are three major provisions of which state-chartered credit unions should take note:

  • State-chartered credit unions will be permitted to lend to credit unions headquartered in other states rather than just to credit unions located in Maine.
  • The grounds for expulsion have been expanded to include a member who demonstrates dangerous, threatening, or abusive behavior and asks credit unions to adopt a written expulsion policy by 2025.
  • Finally, through negotiation between the Bureau of Financial Institutions and the League, the legislature adopted a provision that would allow state-chartered credit unions to request fewer than twelve board meetings in a year “for good cause.” Representatives from the Bureau asserted that good cause could range in reasons from natural disasters or emergencies to credit unions who have good management with strong examination results.

The bill will go into effect 90 days from the adjournment of the Legislature. Statutory adjournment is set for April 17, 2024, but the Legislature may extend session by agreement. The law will become effective no earlier than July 16, 2024.