HB 187 — Credit Union Update.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 21 HOUSE BILL 187 Committee Substitute Favorable 3/25/25 Short Title:

Representatives Howard, Bell, Balkcom, and Liu (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Finance, if favorable, Rules, Calendar, and Operations of the House February 26, 2025 A BILL TO BE ENTITLED AN ACT TO UPDATE THE CREDIT UNION STATUTES.

Moneys collected under this section shall be deposited with the State Treasurer ofNorth Carolinaand expended, underthetermsoftheExecutiveBudget Act, to defrayexpenses *H187-v-2**H187-v-1* General Assembly Of North Carolina Session 2025 incurred by the office of the Administrator of Credit Unions in carrying out its supervisory and auditing functions.

(c) A photostatic or photographic reproduction of any credit union records shall be admissible as evidence of transactions with the credit union.A credit union may cause any or all records kept by it to be recorded, copied, or reproduced by any photographic, reproduction, electronic, or digital process or method, or by any other records retention technology approved Page 2 House Bill 187-Second187-First Edition General Assembly Of North Carolina Session 2025 byruleororderoftheAdministrator,ofakind thatis capableofaccuratelyconvertingtherecords into tangible form within a reasonable time.

Unless, of course, such director, officer, committee member or employee shall appear House Bill 187-Second187-First Edition Page 3 General Assembly Of North Carolina Session 2025 at the hearing in person or by a duly authorized representative, he shall be deemed to have consented to the issuance of an order of such removal.

(c) The Administrator may conduct an investigation, including conducting background checks, of any credit union employee, officer, director, or committee member when considering applications for new charters, changes to those positions in credit unions in a troubled condition, a managing agent or manager in a conserved credit union, or when the Administrator has reason Page 4 House Bill 187-Second187-First Edition General Assembly Of North Carolina Session 2025 to believe the credit union employee, director, or committee member affected or is likelyto affect the safety or soundness of the credit union." SECTION 3.

House Bill 187-Second187-First Edition Page 5 General Assembly Of North Carolina Session 2025 (18) Act as fiscal agent for and receive deposits from the federal government, this State, or any agency or political subdivision thereof;thereof.

(26) Subject to rules adopted by the Administrator, act as trustee or custodian, and receive reasonable compensation for so acting, under any written trust instrument or custodial agreement created or organized and forming a part of a deferred compensation plan for its members or groups or organizations of its members, provided members so long as the funds of the plans are invested Page 6 House Bill 187-Second187-First Edition General Assembly Of North Carolina Session 2025 in savings or deposits of the credit union.

The The amounts paid in on shares or deposits by an expelled or withdrawing member, with any dividends credited to the shares and any interest accrued on the deposits to the date of expulsion or withdrawal withdrawal, shall be paid to the member, but member in the order of expulsion or withdrawal, afterdeductingafter anyamountsdeducting duetoany thecreditamounts due to the credit union bythememberbythe member and onlyasonly as funds therefor become available, after deducting any amounts due to the credit union by the member.

The member shall have has no other or further right in the credit union or to anyanyofits of its benefits, but thetheexpulsionorwithdrawal expulsion or withdrawal shall does notnotoperateto operaterelievethemember to relieve the member from any remaining liability to the credit union.

House Bill 187-Second187-First Edition Page 7 General Assembly Of North Carolina Session 2025 (2) Persons residing in census tracts in North Carolina where the center of population, as defined by the United States Census Bureau, is more than 8 miles from a bank branch, as defined in G.S.

Page 8 House Bill 187-Second187-First Edition General Assembly Of North Carolina Session 2025 (7) In an aggregate amount not to exceed twenty-five percent (25%) of the allocations to the reserve fund in any agency, company, or association twelve and one-half percent (12.5%) of the credit union's net worth, in agencies, companies, or associations of the type described in subdivision (2) of this section provided so long as the purposes of the agency, company, or association are designed to assist in establishing and maintaining liquidity, solvency, and security in credit union operations.

The Administrator shall promptly give notice of the date, time, and place of the hearing to the credit union and any other House Bill 187-Second187-First Edition Page 9 General Assembly Of North Carolina Session 2025 interested party.

Page 10 House Bill 187-Second187-First Edition