Bill > HB5782

This bill amends the Credit Union Act to allow domestic credit unions, which are financial institutions owned by their members, to obtain insurance for member share and deposit accounts not only from federal agencies but also from qualified private insurance organizations. A "qualified private insurance organization" is defined as an insurance carrier licensed in the state and authorized by the director to provide primary share or deposit insurance, meaning it covers accounts up to the same amount as federal insurance. The bill also outlines procedures for credit unions that are denied or have their insurance terminated by either a federal agency or a private insurer, requiring them to dissolve, merge, or seek additional time from the director to secure insurance. Furthermore, it allows insurance carriers to apply to the state department for authorization as a qualified private insurance organization and gives the director the authority to deny or revoke this authorization if the carrier lacks the necessary resources or management to protect accounts. Credit unions converting to private insurance must comply with state and federal laws and notify their members. The bill is tied to other legislative measures, meaning it will only take effect if those other bills are also enacted.