LYNCHBURG, Va. (2/9/12)--Virginia state-chartered credit unions now have the power to pursue a low-income designation after the State Corporation Commission adopted a parity regulation, according to the Virginia Credit Union League.
The capability will allow state-chartered credit unions that are granted the designation to take advantage of benefits and resources that are currently available to federal credit unions that have obtained a low-income designation, said Rick Pillow, league president/CEO.
Last year, the league approached the state Bureau of Financial Institutions on behalf of member credit unions, who were seeking that authority. State charters granted a low-income designation will now have the same additional powers as their federal counterparts.
The commission released the proposal for comment in late 2011. Comments on the proposed regulation were filed by the Virginia Credit Union League; Virginia CU, Richmond; BayPort CU, Newport News; Beacon CU, Lynchburg; Virginia Transfer and Storage Company; Virginians Against Payday Loans; and the Virginia Interfaith Center for Public Policy.
All of the comment letters supported the proposed regulation.
"We believe in the dual-chartering system and we've worked hard to ensure parity between the state and federal charters," Pillow said. "I want to personally thank Commissioner Joe Face for his support, and special thanks also to the credit unions that joined the league in working on this proposal. It's another example of what we can accomplish together."
Low-income designated credit unions are eligible under federal law to:
- Accept nonmember deposits;
- Accept secondary capital;
- Participate in the Community Development Revolving Loan Program;
- Obtain funds from the Community Development Financial Institutions Fund operated by the United States Department of the Treasury; and
- Become eligible for an exception to the aggregate loan limit on member business loans.