SSB 1099

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. _____ 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.