... or Le Pew?
One last round on last weeks' North Carolina Credit Union Commission Meeting. The results were three significant inactions:
✓ 1) the Commissioners kowtowing to the N.C. Attorney General's opinion that their sole role under State law is to sit quietly,
✓2) the CU Administrator's continuing refusal to answer the question: "Does the NC Administrator of Credit Unions permit NC credit unions to deny eligible, qualified members the right to seek self/membership nomination to serve on the credit union board? Y/N"; and
✓3) the Division was confronted [link to Eclipse of CUs #3] over its 2023 endorsement of H410 before the N.C. Legislature - the crickets were deafening on that one too! [see link: Regulatory Capture issue]
Hope you will take a few moments to check out the links above. As the speaker correctly points out:
✅ "H410 is a boondoggle."
The N.C. Legislature reconvenes for its "Short Session" on April 24th and H410 remains in the hopper for consideration. So, get ready again for a "street fight on Jones" over the bill. The Legislature was purposefully misled last year by promises that H410 was no more than a few minor "CU Updates"!
✅ About as far from the truth as you can get! Here's a refresher of what H410 really changes:
👎 H. 410 is not a "minor update" to credit union statutes; it is a major rewrite.
👎 H. 410 authorizes unlimited membership, anyone can join. And, would overturn a 1981 N.C. Supreme Court ruling affirming limited membership as the intent of N.C. law
👎 H. 410 authorizes open membership including corporations anywhere in the country.
👎 H. 410 de-emphasizes the focus on North Carolina and citizens of modest means. Proponents have consistently rejected a specific mandate to serve these individuals.
👎 H . 410 permits unlimited lending, including unsecured, to corporations.
👎 H. 410 will accelerate the export of local jobs, local funds, and local capital out of North Carolina, undermining the State's efforts at business recruitment and development - especially in rural counties.
👎 H. 410 will enhance "federal parity" for credit unions, which is a device to circumvent scrutiny and approval of North Carolina standards by the State Legislature.
👎 H. 410 has disrupted a positive detente in the rivalry between N.C. banks and credit unions and will "unlevel" the competitive balance between the two groups,
👎 H. 410 does not enjoy united support among N.C. state-chartered credit unions and is opposed by thousands N.C credit union members and groups such as the State Employees Association of North Carolina (SEANC).
👎 H. 410 does not represent the best interests of all of North Carolina, nor those specific citizens who are credit union member-owners. If credit union statutes need to be rewritten, H. 410 is not the answer.
... lets hope that H410: "The CU Le Pew Bill" finds a home in a ditch by the side of the road!
