Enrolled Bill Summary

            House Bill 1307 amends Finance Code provisions relating to the administration, operation, and regulation of credit unions. Among its provisions, the bill authorizes a credit union to apply to the commissioner for status as an underserved-area credit union and, if so designated, to accept shares and deposits from nonmembers and issue secondary capital accounts. It adds requirements for credit union membership and establishes good-cause reasons for a person’s expulsion from a credit union. The bill specifies that the commission may authorize credit unions to issue certificates of indebtedness and permits a credit union to sell and cash checks and money orders to members for a fee. The bill establishes guidelines for a credit union to follow in opening and administering a trust account, and authorizes a credit union to limit the number of shares owned by a member and to establish classes of those shares. The bill limits third-party claims made on a credit union and permits credit unions to take certain actions to avoid or mitigate a loss on a loan. The bill expands provisions relating to the confidentiality of information obtained by the department and specifies that the authority of an employee to comake, guarantee, or endorse a loan is limited to senior management. The bill provides requirements for a credit union’s equity capital and net worth reserves, and sets out certain procedures relating to the liquidation of a credit union.