³I think we have an agreement,² said Senate Majority Leader Curtis Bramble, R-Provo, who has brokered the negotiations between the rivals.
A bill has been drafted, and both sides are awaiting the final sign off. Howard Headlee, president of the Utah Bankers Association, said he is waiting for final approval from his board, and Scott Simpson, president of the Utah League of Credit Unions, said the sides are close to a deal.
If the deal goes through, Bramble said, it would be the first time in his eight years in the Legislature that a bill has gone to the floor with support from both sides.
A settlement to the dispute between the long-time rivals also would avert the credit unions' threat to put changes to the credit unions' charter before voters in a statewide initiative in November.
Under the negotiated terms, credit unions chartered by the state would be able to make individual loans of up to 4 percent of the institution's total assets, up from 1 percent now. That change is meant to allow small credit unions to make loans for homes and other big-ticket items.
Commercial borrowers no longer would have to be members of the credit union for six months, and the $250,000 limit on loans to commercial borrowers would be indexed to increase with inflation.
Bankers leader Headlee said his group won't be urging members to push for the legislation, but bankers also won't actively oppose it.
He said the bankers' issue has been with the big credit unions that compete with banks but enjoy a tax-exempt status. Many of those have migrated to a federal charter, which allows them to make larger business loans.
³We've always been willing to work with the credit unions that have stayed true to their mission, and this year is no different,² he said.
Simpson said the credit unions ³remain hopeful² that the issues soon will be resolved and, with time running down in the session, he expects the bill to move quickly.
³I don't think we're too far away,² he said. The compromise the two sides have reached is ³pretty near our original objectives.²
