DUBLIN, Ohio (6/6/08)--A bill that would modernize Ohio's credit unions with amendments on operations, administration and governance is on its way for signature by Gov. Ted Strickland. Senate Bill 247 includes a number of amendments, according to the Ohio Credit Union League (eLumination Newsletter
June 4). It:
* Eliminates written ballot approval every time a ballot is necessary, provided it meets established guidelines; * Authorizes no board of directors election if candidates are less than equal to positions and does not require consent or acclimation; * Reviews appointment for the Ohio Credit Union Council, which would be based on asset size (one member from a credit union with less than $35 million; another from a credit union of less than $50 million); * Clarifies joint account holder deposits payable on death; * Sets forth conditions for safes, safe deposit boxes and other secure receptacles and addresses the use of safe deposit boxes by minors; * Establishes record retention time periods and provides additional flexibility for merging with another credit union, and establishes retention time lines to limit liability if documents are destroyed; * Sets forth requirements for storing records electronically and the use these documents, which is same as the Banking Code; * Addresses merger requirements, allowing additional flexibility and structure and providing guidelines for waiver of membership vote; and establishes a required vote of a majority, not 2/3, vote during a membership vote; * Changes language regarding letters of credit by credit unions for agricultural commodity handlers from "bank" to "financial institutions."
"This bill is a strong step toward better enabling credit unions to have the flexibility and ability to operate more efficiently," said league General Counsel John Kozlowski in a press release. The bill will become effective 90 days after the governor's signature.