... There is a Difference!
Probably tired of learning about "financial deserts" and some of the other political/legal "ins and outs" which will affect your credit union.
✅ H.187 proposes substantial changes in the laws governing North Carolinas' credit union. All of the traditional restrictions on membership, commercial lending, and many cooperative, member-ownership and control rights are being eliminated.
Many large credit unions seek bank equivalent powers to further fuel ambitious expansion plans. This focus on growth has created an uproar at the national level over the fairness of the tax exempt status of credit unions. Historically, the number one complaint of the banking industry has been "the tax exempt" push of credit unions into commercial lending - the "bread and butter" business of banking.
😎 Note below that H.187 eliminates any constraint on commercial lending by N.C. credit unions and will permit unsecured commercial lending without statutory limitation
❇ Existing law: § 54‑109.27. Societies and other associations.
Societies, and copartnerships composed primarily of individuals who are eligible to membership, and corporations whose stockholders are composed primarily of such individuals, may be admitted to membership in the same manner and under the same conditions as individuals, but may not borrow in excess of their shareholdings. Provided, however, secured loans in excess of shareholdings may be made to nonprofit societies, copartnerships, and corporations who are members. (1975, c. 538, s. 1; 1979, c. 809, s. 1.)
❇ Proposed H.187 law: § 54-109.27. Societies, corporations, and other entities. Societies and partnerships composed of orcontrolled primarily by individuals eligible for membership, corporations owned or controlled by eligible individuals, and other business entities owned or controlled primarily by eligible individuals may be admitted to membership in the same manner and under the same conditions as individuals." [shareholding/secured limitations removed].
🚩 Isn't it risky - if not reckless - to wave a red flag at a bull!
... yep, pretty "bullish"!
