Privately Insured Credit Unions Conversion Modernization Act

Bill Number

S. 4808

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-06-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Last Updated

2026-07-08T16:06:14Z

AI-Generated Summary

Purpose of the Legislation

This bill amends the Federal Credit Union Act to update rules for conversions involving privately insured credit unions. Its goal is to modernize the process by changing certain voting and notice requirements.

Key Provisions

• The bill modifies Section 206(d)(2) of the Federal Credit Union Act (12 U.S.C. 1786(d)(2)).
• It removes the existing requirement that at least 20 percent of the credit union's total membership must participate in a conversion vote.
• It changes the required notice period for such votes from a range of 7 to 30 days to a minimum of 90 days.

Significant Changes to Existing Law

• Voting threshold removal: Eliminates the minimum membership participation rate of 20 percent for conversion votes.
• Notice period extension: Replaces the prior 7-to-30-day window with a longer minimum of 90 days before the vote.

Potential Impacts

• On credit unions: Privately insured credit unions may face altered procedures for member voting and notifications during conversions.
• On citizens: Members of these credit unions could experience different timelines and participation rules for decisions on conversions.
• No direct effects on government agencies, international relations, or other sectors are specified in the bill.

Main Stakeholders Affected

• Privately insured credit unions.
• Members of privately insured credit unions.
• Entities involved in private credit union insurance.

Notable Legal, Constitutional, or Political Implications

• The changes focus solely on procedural updates to an existing federal statute without addressing broader legal or constitutional issues.
• No implications for federal-state relations or other political matters are outlined in the legislation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Cortez Masto, Catherine [D-NV]

Cosponsors (1)

Sen. Moreno, Bernie [R-OH]

Recent Actions

• 2026-06-17: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
• 2026-06-17: Introduced in Senate

Bill Versions

• Privately Insured Credit Unions Conversion Modernization Act — issued 2026-06-17 — PDF (2 pages)