❌ HB612
Regards credit union share guaranty corporations
Current Status: Introduced In House
Summary
The bill amends section 1761.10 of the Revised Code to establish requirements for credit union share guaranty corporations, including maintaining a guarantee fund at a minimum level, requiring capital contributions from participating credit unions, and allowing for special assessments and distributions based on the fund's status. It also outlines procedures for reporting defaults and the dissolution of the corporation.
Rationale
The bill imposes regulatory requirements on credit unions and establishes government oversight of financial practices, which conflicts with the LP and LPO principles advocating for minimal government intervention in economic matters and free markets.
Risks and Concerns
- Increased government control over financial institutions
- Potential for cronyism in the approval processes
- Restrictions on credit unions' operational flexibility