SF 4444
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/14/2026 03:36 p.m.
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A bill for an act
relating to financial institutions; authorizing credit unions to obtain insurance from
a credit union share insurance provider; regulating credit union share guaranty
corporations; amending Minnesota Statutes 2024, sections 52.063, subdivision 3;
52.24, subdivisions 1, 2, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 52.063, subdivision 3, is amended to read:
Subd. 3.
Appointment of National Credit Union Administration Board as
receiver.
Upon a request by the commissioner of commerce, the court may appoint the
National Credit Union Administration Board, created by section 3 of the Federal Credit
Union Act, as amended,new text begin or a share insurance provider approved by the commissionernew text end as
receiver of a credit union, without bond, when the deposits of the credit union are to any
extent insured by the National Credit Union Administration Boardnew text begin or approved share
insurance providernew text end , and the credit union has had its operations suspended or has executed
a consent cease and desist order with the commissioner in lieu of a suspension under section
52.062. Notwithstanding any other provisions of law, the commissioner of commerce may,
in the event of the suspension or consent cease and desist order, tender to the National Credit
Union Administration Boardnew text begin or approved share insurance providernew text end the proposed appointment
as receiver of the credit union. If the National Credit Union Administration Boardnew text begin or approved
share insurance providernew text end accepts the proposed appointment and the court appoints the
National Credit Union Administration Boardnew text begin or approved share insurance providernew text end as receiver
upon a request by the commissioner, the National Credit Union Administration Boardnew text begin or
approved shared insurance providernew text end shall have and possess all the powers and privileges
provided by the laws of this state and section 207 of the Federal Credit Union Act, as
amended, with respect to a receiver of a credit union, the board of directors of the credit
union, and its members.
Sec. 2.
Minnesota Statutes 2024, section 52.24, subdivision 1, is amended to read:
Subdivision 1.
Insurance accounts.
Every credit union under the supervision of the
commissioner of commerce shall at all times maintain in effect insurance of member share
and deposit accounts under the provisions of title II of the National Credit Union Actnew text begin or
through a credit union share guaranty corporation that is approved by the commissionernew text end . A
credit union deleted text begin whichdeleted text end new text begin thatnew text end fails to meet this requirement for insurance of its share and deposit
accounts shall either dissolve or merge with another credit union deleted text begin whichdeleted text end new text begin thatnew text end is insured under
title II of the National Credit Union Actnew text begin or through a credit union share guaranty corporation
that is approved by the commissionernew text end .
Sec. 3.
Minnesota Statutes 2024, section 52.24, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Credit union share guaranty corporation; accounts insured. new text end
new text begin
(a) A credit
union share account of an individual member or a nonmember of a participating credit union
must be guaranteed in an amount established from time to time by the credit union share
guaranty corporation. The primary guaranteed amount must be at least the amount of the
credit union share account but must not exceed $250,000 or the primary guaranteed amount
insured by the National Credit Union Administration, whichever is greater.
new text end
new text begin
(b) The commissioner may examine a credit union share guaranty corporation that insures
the member accounts of a credit union that is subject to this section. The commissioner may
assess the credit union share guaranty corporation examined for reasonable costs incurred
to conduct an examination under this section. Money received from an assessment under
this paragraph must be deposited in the financial institutions account in the special revenue
fund.
new text end
new text begin
(c) A credit union is prohibited from voluntarily terminating the credit union's insurance
with the National Credit Union Administration Share Insurance Program or a credit union
share guaranty corporation without receiving approval from the commissioner.
new text end
Sec. 4.
Minnesota Statutes 2024, section 52.24, subdivision 2, is amended to read:
Subd. 2.
Certificate of approval.
No credit union shall be granted a certificate of
approval by the commissioner of commerce unless the credit union has obtained a
commitment for insurance of its member share and deposit accounts under the provisions
of title II of the National Credit Union Actnew text begin or from an approved credit union share guaranty
corporationnew text end .