DCBS Finalizes Rules on Community Charter Field of Membership
May 5, 2011
May 5, 2011
The Oregon Department of Consumer and Business Services (DCBS) issued a final rule allowing credit unions adopting a community charter to continue to serve those members who were formerly part of their occupational or associational group, even if members of that group are outside the boundaries of the new community charter.
In 2009, SB 438 was introduced, updating and correcting the Oregon Credit Union Act, including field of membership. This legislation was passed unanimously in both chambers and signed by the Governor in 2009. The final rule was issued in late November, 2010.
There was debate after the legislation was signed about how the new law would be implemented. Of particular concern was section ORS 723.172, determining the field of membership for community-chartered credit unions.
Credit unions adopting a community charter are still allowed to serve out-of-area customers who were within the Select Employee Group (SEG) they served prior to changing their charter. It was hoped that the new rule allow credit unions to adopt new groups existing within their community boundaries and serve their out-of-area customers as well. However, the rule was written much more narrowly than anticipated and does not include such a clause.
The amended and adopted language may be viewed here.
Questions? Contact the Compliance Hotline: 1.800.546.4465 or e-mail us at email@example.com
Posted in Economy.