Sponsor
Warren Davidson
Representative · R-OH
Representative · R-OH
The bill increases member notice and reduces deadlocks by removing a participation quorum, trading off greater member information and faster resolution against the risk that low turnout lets a small voting minority approve conversions and that longer notices raise delays and compliance costs.
Credit union members and the institutions themselves: removing the 20% participation quorum means conversion votes are decided by those who actually vote, reducing deadlocks and helping conversions resolve more quickly.
Credit union members: a mandated, clearer 90-day minimum notice before conversion-related actions gives members more time to review materials and make informed decisions.
Credit union members: without the 20% participation threshold, conversions could be approved by a small, unrepresentative minority if overall turnout is low.
Credit unions, their members, and counterparties: the 90-day notice requirement may lengthen conversion timelines and prolong uncertainty about governance and services.
Credit unions: extended notice and related procedures may increase administrative, legal, and communications compliance costs tied to conversion processes.
Based on analysis of 2 sections of legislative text.
Removes the 20% member participation requirement for credit union conversion votes and mandates at least 90 days' notice before the vote.
Official title: To amend the Federal Credit Union Act with respect to conversion modernization for privately insured credit unions.
Introduced July 23, 2026 by Warren Davidson · Last progress July 23, 2026
Changes the rules for federally chartered credit unions that want to convert from National Credit Union Share Insurance Fund (NCUSIF) coverage to private deposit insurance. It removes the statutory 20% minimum member participation requirement for conversion votes and replaces the short 7–30 day notice window with a single minimum 90-day advance notice requirement. These amendments make it procedurally easier for a conversion vote to be valid (by eliminating the 20% participation threshold) while giving members a longer minimum notice period before a vote. The changes affect credit union members, credit unions, private insurers, and regulators overseeing conversions.