AZ LEG Credit Unions Formation


On Apr. 3, AZ LEG passed bill reorganizing credit union laws.


  • AZ LEG passed SB 1296 on credit union, formation, permitted loans, and membership.
  • Amendments
  • Measure amends AZ LEG 6-501, AZ LEG 6-506, AZ LEG 6-510; and AZ LEG 6-516.
  • AZ LEG 6-522, AZ LEG 6-523, AZ LEG 6-524, AZ LEG 6-531; AZ LEG 6-537, AZ LEG 6-542, AZ LEG 6-551, AZ LEG 6-556, AZ LEG 6-561, AZ LEG 6-563, AZ LEG 6-564.
  • Overview
  • Amends definitions with technical corrections; amends procedures for organizing credit union; deletes provision regarding CU ATMs; Repeals AZ LEG 6-512 re fiscal year.
  • Also amends general powers of credit unions, including power to purchase another financial institution and hold membership in other credit unions, associations.
  • Further amends powers, defining nature of membership of credit union; allows for approval or denial by board of a membership applicant; allows membership fees.
  • Defines authority and responsibilities of credit union board of directors, voting.
  • Sets procedures for suspension and removal of officers, directors, committee members of the credit union; defines loan procedures and limits prepayment penalties.
  • Legislative History
  • On Jan. 30, 2024, bill introduced in Senate; on Feb. 19, 2024, bill passed Senate.
  • On Feb. 21, 2024, bill introduced in House; on Mar. 28, 2023, bill passed House.
  • On Apr. 1, 2024, bill transmitted to governor; on Apr. 3, 2023, governor signed bill.
  • Effectiveness)
  • Bill effective on Sep. 14, 2024 (91 days after Jun. 15 adjournment).

Regulators AZ LEG
Entity Types Bank; CU
Reference Bill, SB1296, 4/3/2024; Citation: *AZ LEG* 6-501, 6-506, 6-510,6-512, 6-516, 6-522, 6-523, 6-524, 6-531, 6-537, 6-542, 6-551, 6-556, 6-561, 6-563, 6-564;
Functions Compliance; Financial; Legal; Market Conduct; Operations; Treasury
Countries United States of America
Category
State
Products Banking
Regions Am
Rule Type Final
Rule Date 4/3/2024
Effective Date 9/14/2024
Rule Id 207076
Linked to N/A
Reg. Last Update 4/3/2024
Report Section US Banking

Last substantive update on 04/05/2024