On June 10, the governor of Connecticut signed HB 7093, which amends the state’s credit union provisions. The legislation, effective July 1, (i) allows credit unions to extend credit with preferential rates or terms to insiders, employees, and governing board members under certain circumstances; (ii) expands the list of loans exempt from credit union business loan requirements; (iii) removes regular reserves from being included in certain calculations of capital and net worth; and (iv) allows credit unions certified as community development financial institutions to accept nonmember deposits up to certain caps based on the credit union’s total assets. For the largest credit unions with total assets of $1 billion or more, the maximum nonmember deposit amount is the greater of $25 million or 1.5 percent of the total share value.
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