SB 45--
By Committee on Financial Institutions and Insurance

AN ACT relating to credit unions; determining a quorum for meetings; concerning loans to directors; amending K.S.A. 17-2207 and 17-2216a and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 17-2207 is hereby amended to read as follows: 17- 2207. The credit union fiscal year shall end at the close of business on December 31. Special meetings of the members may be held by order of the board of directors or the supervisory committee and shall be held on request of 10% of the members. At all meetings each member shall have but one vote, irrespective of the number of shares held. The number of members constituting a quorum for any meeting shall be as specified in the bylaws. No member may vote by proxy, but a member may vote by absentee or mail ballot if the bylaws of the credit union so allow. A society, association, copartnership or corporation having membership in a credit union may be represented by one person, duly authorized by the society, association, copartnership, or corporation to represent it. At any meeting the members may decide on any matter of interest to the credit union, may overrule the directors, and, by a 3/4 vote of those present, may amend the bylaws, providing the notice of the meeting shall have stated the question to be considered. Sec. 2. K.S.A. 17-2216a is hereby amended to read as follows: 17- 2216a. Subject to rules and regulations of the administrator, a credit union may make loans to its directors, credit committee members and super- visory committee members or other members for which the director or committee member acts as guarantor or endorser who are not employees only if: (a) Such a loan complies with all lawful requirements under the credit union law with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; (b) in the case where, upon the making of the loan, the aggregate of loans outstand- ing to the borrower exceeds by $10,000 $20,000 the total amount of shares, share certificates and other shareholdings in any credit union, not otherwise encumbered or pledged, which are pledged as security for the loans of the borrower, the loan is approved by the credit committee or duly authorized loan officer and the board of directors; and (c) the bor- rower takes no part in the consideration of the application and does not attend any committee or board meeting while the application is under consideration. All such loans shall be reported to the administrator at least semiannually. Sec. 3. K.S.A. 17-2207 and 17-2216a are hereby repealed. Sec. 4. This act shall take effect and be in force from and after its publication in the statute book.