House Bill 4501

    Florida House of Representatives - 1998                HB 4501

        By the Committee on Financial Services and Representatives
    Safley, Bainter, Lawson, Flanagan and Sanderson





  1                      A bill to be entitled

  2         An act relating to conversion of credit unions;

  3         prohibiting the Department of Banking and

  4         Finance from approving the conversion of

  5         federally-chartered credit unions to

  6         state-chartered credit unions except under

  7         certain circumstances; providing criteria;

  8         providing an effective date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  (1)  The Department of Banking and Finance

13  shall not approve an application by a federally-chartered

14  credit union currently doing business in this state for

15  conversion to a state charter pursuant to s. 657.066, Florida

16  Statutes, unless a completed application for conversion was on

17  file with the department on February 25, 1998.

18         (2)  The prohibition specified in subsection (1) shall

19  terminate on July 1, 1999, unless the Comptroller determines

20  before such date by an order of general application that it is

21  in the public interest to accept and approve charter

22  conversion applications, and identifies a procedure for the

23  acceptance and processing of such conversion applications. In

24  making such determination, the Comptroller shall consider:

25         (a)  Whether the United States Congress has amended the

26  Federal Credit Union Act, 12 U.S.C. s.1751 et seq., subsequent

27  to the enactment of this section, and, if so, the effect such

28  amendments have or may have on the relative competitive

29  positions of state-chartered and federally-chartered credit

30  unions.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1998                HB 4501

    614-124-98






  1         (b)  Whether, and the extent to which, this state will

  2  be able to assume the costs of examination and supervision for

  3  any newly-converted institutions.

  4         (c)  Such other factors as the Comptroller deems

  5  relevant to the maintenance of a fair and competitive

  6  financial system in this state.

  7         Section 2.  This act shall take effect upon becoming a

  8  law.

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11                          HOUSE SUMMARY

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      Prohibits the Department of Banking and Finance from
13    approving applications for conversion of
      federally-chartered credit unions to state-chartered
14    credit unions except under specified circumstances and
      within specified limitations. See bill for details.
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