Private insurance for credit unions, OK, panel says

January 22, 1991|By David Conn | David Conn,Annapolis Bureau of The Sun

ANNAPOLIS -- For the time being, state-chartered credit unions can continue to receive insurance from the private Credit Union Insurance Corp., rather than being forced to obtain federal insurance.

The House Economic Matters Committee made that decision last week and also agreed to sponsor legislation to extend the offices of bank commissioner and consumer credit commissioner until 2001, and to continue the phase-out of the Savings and Loan Division, which is scheduled to expire July 1, 1992. By that date, all state-chartered thrifts will have converted either to credit unions or federal savings and loans.

Also surviving the review by the primary business committee in the House were the Banking Board, an unpaid advisory panel to the bank commissioner, and the Collection Agency Licensing Board. The state Department of Fiscal Services had recommended that the two boards be abolished.

The committee itself will not sponsor legislation on those recommendations, but individual members of the House or Senate are free to draft their own bills contrary to the committee's decisions.

The Department of Fiscal Services had recommended abolition of the credit union insurer, even though it is financially more sound than its federal counterpart.

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