Senate Bill 595 also includes compromise legislation updating laws for NC state-chartered credit unions.

We have consistently opposed the earlier versions of this proposal (H 187, and H 410 from the 2023-2024 session), particularly provisions that would have:

• Expanded credit union membership eligibility globally
• Authorized lending to municipalities

The compromise removes both provisions and includes more limited updates. However, certain elements remain concerning. [click for more]

Notably, the bill allows certain credit unions to expand membership to:

• Individuals and families at or below the federal poverty level (age 25+)
• Residents of census tracts where the population center is more than 9 miles from a bank branch

The age requirement appears intended to prevent misuse (e.g., adding students with high future earning potential). The “9-mile” definition of a banking desert remains controversial because it:

• Deviates from national standards
• Does not account for existing community-based credit unions already serving those areas

Legislators added a safeguard requiring credit unions to open a physical branch in these areas – preventing reliance solely on digital marketing or geofencing.

If enacted, these provisions take effect July 1, 2026.