Key Provisions of SB 375: Nevada State Charter Modernization

In May 2025, Nevada Governor Joe Lombardo signed Senate Bill 375 into law — a bill sponsored by Nevada’s Credit Unions. This legislation modernizes the regulatory framework for state-chartered credit unions by enhancing operational flexibility, improving service delivery, and aligning state laws with current industry practices.

This bulletin highlights the key provisions of SB 375, which take effect on October 1, 2025, and outlines important considerations for credit union compliance.

Key takeaways:

• Enhanced Flexibility for Low-Income Credit Unions: SB 375 empowers eligible low-income credit unions to issue shares to non-members, offering a new avenue for capital generation and service expansion, subject to specific conditions and regulatory oversight.
• Commissioner’s Emergency Powers: The bill grants the Commissioner of the Nevada Financial Institutions Division (FID) crucial authority to temporarily suspend certain credit union regulations during states of emergency, declarations of disaster, or when deemed in the public interest, providing vital adaptability during unforeseen circumstances.
• Increased Membership Accessibility: The reduction of the required par value of shares from $5 to $1 (or a multiple thereof) aims to make credit union membership more accessible to a wider demographic, with increased flexibility for credit unions to determine par value in bylaws or by board resolution.
• Streamlined Branch Expansion: The process for establishing new branch offices has been streamlined by removing the “reasonably necessary” determination and imposing a 60-day approval or denial timeframe for the Commissioner, accelerating expansion opportunities.
• Modernized Governance and Operations: SB 375 introduces key updates to credit union governance, including explicit authorization for electronic board and member meetings, revised board meeting frequency requirements (minimum six times annually, with at least quarterly meetings), and expanded authority for boards to appoint officers, directors, or employees as membership officers.
• Expanded Participation in Loans: Non-members are now explicitly permitted to participate in loans and extensions of credit to members in various capacities, such as joint applicants or guarantors, while ensuring non-members do not gain automatic access to other credit union services.
• Broadened Investment Horizons: The legislation expands permissible investment authority to include municipal bonds issued by public entities outside of Nevada under specific conditions, and grants the Commissioner the ability to authorize other investments through regulation or written approval.
• Flexible Fixed Asset Investments: Limitations on credit union investments in fixed assets have been removed, aligning state regulations with federal guidelines and allowing credit unions greater flexibility in acquiring, holding, and disposing of property necessary for operations.
• Streamlined Member Onboarding: Credit unions are now authorized to cover entrance fees and/or initial share payments for prospective members as part of a non-discriminatory promotion, reducing financial barriers to membership.
• Clarified Geographic Common Bond: The definition of a geographic common bond has been clarified to require a “well-defined neighborhood, community, or rural district,” aligning Nevada law more closely with National Credit Union Administration (NCUA) guidance.
• Federal Alignment for Reserves: State requirements for regular reserves have been updated to align with federal Prompt Corrective Action (PCA) rules under NCUA 12 CFR §702, enhancing consistency between state and federal oversight.

Read the compliance bulletin here.

Access the ‘Compliance Hotline’

Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

• 844-731-6072
• CANV@viclarityus.com

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include:

• ViClarity
• CU PolicyPro
• ComplySight
• InfoSight
• CU Store
• Record Retention Guide
• GRC Technology Solutions

For more information, email Lisa Quaranta.

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