Wednesday, April 17, 2024

NCCUD Endorses H410: Heaven Scent ...  ... 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!