State Senate Passes CUs' 'Secondary Capital' Bill

CU Legislation Advances in General Assembly

Our secondary capital bills continue to advance in the General Assembly, with the state Senate voting unanimously today to pass SB326. Companion bill HB268 is on the House floor and looks to pass that chamber next week. The legislation would fix the Virginia statute so that the NCUA’s Subordinated Debt Rule will not be in conflict with the Virginia Code.

This fix will ensure that Low-Income or Complex credit unions otherwise qualifying to issue subordinate debt under NCUA guidelines will not be denied that opportunity owed to current language in the Virginia statute.

Our “parity powers” bills - HB209 and SB329 - will make the process easier for state-chartered credit unions to exercise the same powers as federally chartered credit unions. Currently, state-chartered credit unions must seek permission to do this; we are asking that be changed to a notice requirement. The two bills have not yet been heard in committee.

Related: House Committee OKs CU Secondary Capital Bill
Related: CU 'Secondary Capital' Bill Passes Senate Committee
Related: League, Credit Unions Push Secondary Capital, 'Parity Powers' Bills in General Assembly