Relating to matters under the purview of the credit union division of the department of commerce

This bill relates to matters under the purview of the credit union division of the department of commerce. The bill modifies the amount of securities that a credit union may manage for the benefit of a public officer from 110 percent to 100 percent of the total deposits of public funds, less the amount of deposits that are federally insured. The bill provides that a public officer shall obtain security for a deposit in excess of the amount federally insured by acquiring a nontransferable letter of credit from the United States, an agency or instrumentality of the United States, a national cooperative bank, federal home loan bank, any corporate credit union whose capital level remains well-capitalized, or any other entity approved by the treasurer of the state. The bill modifies language to allow a credit union director compensation subject to the bylaws of a credit union. Current law does not allow compensation to a credit union director for service. The bill requires credit union boards to hold regular meetings. A credit union with an individual rating of a four or five, or a composite rating of three, four, or five under the Iowa regulatory risk rating system is required to meet monthly. A new credit union is required to meet monthly for the first five years. The bill expands activity that may constitute expulsion from a credit union to include failing to participate in the affairs of the credit union, being physically abusive to a credit union member or staff, being verbally abusive to a credit union member or staff, or committing fraud, attempted fraud, or other illegal conduct resulting in a conviction in relation to the credit union. The bill modifies the expulsion hearing procedure. A member may request a hearing before the credit union superintendent, which shall occur days after the member’s request.205. Current law provides that the membership of a credit union may reinstate an expelled member by majority vote upon the terms and conditions prescribed at the hearing. The bill provides that a credit union may invest in investment instruments as authorized by the superintendent.