RALEIGH, N.C. (7/9/13)--A North Carolina bill that amends laws governing credit unions and was signed into law June 19 by Gov. Pat McCrory took effect July 1.
HB515 mostly makes changes to create consistency with North Carolina's banking laws as they relate to account provisions, said the North Carolina Credit Union League (The Weekly Conversation
HB515 creates changes that affect these areas:
- Minors--The Credit Union Act was previously silent on minor accounts. HB515 adds two provisions to allow a credit union to: 1) treat a minor as an adult for the purposes of share or deposit accounts and 2) create a simple custodial share account that one or more adults may open for a minor.
- Investment Authority--State-chartered credit unions were permitted to invest in corporate bonds under North Carolina law, but were limited in making investments that have an AAA credit rating. The change under the investment provisions allows a state-chartered credit union to invest in investment grade corporate bonds with at least A+ or an equivalent rating, expanding a state charter's investment authority. State-chartered banks would still have a lower credit rating threshold of BAA.
- Joint Accounts--Joint account holders can now terminate a joint account or have their names removed from the account.
- Proper proceduresfor dealing with accounts of decedents who had a disability or had been found incompetent now are outlined under the Credit Union Act.
- Powers of Attorney (POA)--The addition of a POA section provides clarity on when a credit union can rely on POAs without liability--until the time of receipt of actual notice of the principal's death or a written notice of revocation signed by the principal. That creates consistency with North Carolina banks in dealing with POAs.