WA House Bill 1318 – Addressing Credit Unions’ Capital

The bill in the House authorizes a credit union, under certain circumstances, to receive payments on accounts or instruments subject to the terms, rates, and conditions as may be established by the board of directors.  Currently there is no matching bill in the Senate.

If enacted, the bill would amend the Washington State Credit Union Act to include payments received on instruments, or accounts issued under the proposed Powers portion of the Act:

Subject to any applicable rules adopted by the director, receive payments on accounts or instruments subject to the terms, rates, and conditions as may be established by the board, and that:
(a) Are not shares or deposits;
(b) Do not provide voting or other membership rights to their holder;
(c) Do not alter the cooperative nature of the credit union;
(d) Are subordinate to the claims of all creditors of the credit union including claims of shareholders, depositors, and the insurer under the federal share insurance program or equivalent as required by RCW 31.12.408;
(e) Are not subject to share or deposit insurance pursuant to RCW 27 31.12.408; and
(f) Are available to be applied to cover operating losses of the credit union in excess of its retained earnings, and to the extent so applied, will not be replenished; and

Current bill status is available here.

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