SF4444

SF4444 (Legislative Session 94 (2025-2026))

Credit unions authorization to obtain insurance from a credit union share insurance provider

Related bill: HF4118

AI Generated Summary

Purpose

To give Minnesota credit unions additional options for insuring member accounts, regulate a new credit union share guaranty option, and adjust related oversight and receivership rules. The bill allows credit unions to obtain insurance from either the National Credit Union Administration (NCUA) or an approved credit union share guaranty corporation, and it creates new requirements and oversight for those guaranty arrangements.

Main Provisions

Section 1: Receiver appointment authority
- The commissioner of commerce may ask the court to appoint the National Credit Union Administration Board (NCUA) or an approved share insurance provider as receiver of a credit union.
- This can happen when deposits are insured by the NCUA or the approved insurer and the credit union is suspended or facing a consent cease-and-desist order.
- If the receiver accepts and the court appoints them, the receiver has the powers and privileges similar to those under state law and the Federal Credit Union Act for a receiver, including matters involving the credit union’s board of directors.
Section 2: Insurance requirement for accounts
- All credit unions must maintain insurance for member shares and deposit accounts either under the NCUA Act (Title II) or through an approved credit union share guaranty corporation.
- If a credit union fails to have insured accounts, it must dissolve or merge with another insured credit union.
Section 3: Credit union share guaranty corporation accounts insured
- Adds a requirement that a credit union share guaranty corporation must insure member accounts up to a guaranteed amount that is at least equal to the account balance.
- The guaranteed amount cannot exceed the greater of $250,000 or the primary guaranteed amount insured by the NCUA.
- The commissioner may examine the guaranty corporation and charge reasonable costs for the examination; such funds go to the state’s special revenue fund.
- A credit union may not voluntarily terminate insurance with the NCUA Share Insurance Program or the guaranty corporation without the commissioner's approval.
Section 4: Certificate of approval
- No credit union may receive a state certificate of approval unless it has a commitment for insurance of member shares and deposits under Title II of the NCUA Act or from an approved guaranty corporation.

Significant Changes from Existing Law

Creates a pathway for credit unions to be insured by a private, state-approved credit union share guaranty corporation, expanding options beyond the NCUA.
Establishes minimum and capped coverage amounts for guaranty corporation accounts, with a new emphasis on a blended model of insurance.
Adds explicit oversight and cost-recovery provisions for the guaranty corporation through state examinations and assessments.
Allows the state to appoint the NCUA or a guaranty provider as receiver of a troubled credit union under specific conditions.
Tightens requirements for obtaining a state certificate of approval, tying approval to a defined insurance commitment.

Terminology to Note

National Credit Union Administration (NCUA) Board
Credit union share insurance provider
Credit union share guaranty corporation
Title II of the National Credit Union Act
Receiver
Consent cease and desist order
Certificate of approval
Special revenue fund
Insurance accounts (member shares and deposits)

Relevant Terms - NCUA, Title II NCUA Act, receiver, credit union, insured accounts, guaranty corporation, insurance commitment, certificate of approval, consent cease and desist order, National Credit Union Act, financial institutions, independent insurance provider.

Bill text versions

Introduction PDF PDF file

Upcoming committee meetings

Commerce and Consumer Protection on: March 24, 2026 12:30

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 17, 2026	Senate		Action	Introduction and first reading
March 17, 2026	Senate		Action	Referred to	Commerce and Consumer Protection

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends Minnesota Statutes 2024 section 52.063, subd. 3 to authorize appointment of the National Credit Union Administration Board or an approved share insurance provider as receiver of a credit union, with the receiver having powers and privileges under state law and the Federal Credit Union Act (section 207) where applicable.",
      "modified": [
        "Adds authority for the commissioner to request appointment of the NCUA Board or an approved share insurance provider as receiver of a credit union, expanding the potential governance and oversight under federal credit union law."
      ]
    },
    "citation": "52.063, subd. 3",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to section 52.062 in relation to suspension and appointment of a receiver under the draft, including potential tender to the NCUA Board or share insurance provider.",
      "modified": [
        "Links the appointment as receiver with the existing suspension/consent provisions in 52.062."
      ]
    },
    "citation": "52.062",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends Minnesota Statutes 2024 section 52.24, subd. 1 to require insurance of member shares and deposit accounts either under Title II of the National Credit Union Act or via an approved credit union share guaranty corporation.",
      "modified": [
        "Establishes mandatory insurance coverage via Title II or approved guaranty corp., with noncompliance triggering dissolution or merger."
      ]
    },
    "citation": "52.24, subd. 1",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Title II of the National Credit Union Act as the mechanism for insurance of member shares and deposits.",
      "modified": [
        "Codifies Title II insurance as an available mechanism for member share and deposit protection."
      ]
    },
    "citation": "National Credit Union Act, Title II",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adds requirement that no credit union shall be granted a certificate of approval unless there is a commitment for insurance of member share and deposit accounts under Title II or from an approved guaranty corporation.",
      "modified": [
        "Requires a binding insurance commitment prior to certificate of approval."
      ]
    },
    "citation": "52.24, subd. 2",
    "subdivision": "2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Federal Credit Union Act, section 3, in relation to the receiver appointment framework and alignment with federal authority.",
      "modified": [
        "Connects the Minnesota receiver mechanism to the Federal Credit Union Act, section 3."
      ]
    },
    "citation": "Federal Credit Union Act, section 3",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Federal Credit Union Act, section 207, to define the powers and privileges of a credit union receiver acting under federal authority.",
      "modified": [
        "Cites section 207 to authorize receiver powers consistent with federal law."
      ]
    },
    "citation": "Federal Credit Union Act, section 207",
    "subdivision": ""
  }
]

Progress through the legislative process

17%

In Committee