Credit Union Modernization Bill Signed by Oregon Governor
April 2, 2012
FOR IMMEDIATE RELEASE
June 15, 2011
BEAVERTON, Ore – Gov. John Kitzhaber yesterday signed into law the Northwest Credit Union Association’s (NWCUA) SB 177—Oregon’s Credit Union Act update bill.
In addition to amending board meeting requirements to permit greater scheduling flexibility, the bill exempts standard mortgage loans to directors or senior managers from the requirement for board approval of loans, and adds additional safeguards regarding loans to directors and senior managers among other things.
“This is a great victory for Oregon credit unions,” said Association President Troy Stang. “It is essential that the charter keep pace with the changing times, and we are thrilled the Oregon legislature and governor agreed.”
Key Features of SB 177 include:
- Amends board meeting requirements to permit greater scheduling flexibility;
- Changes the statutory title of “Credit Manager” to “Chief Credit Officer”;
- Exempts standard mortgage loans to directors or senior managers from the requirement for board approval of loans, and adds additional safeguards regarding loans to directors and senior managers;
- Increases the limit for loans to, and investments in credit union service organizations from two percent of assets to five percent of assets;
- Clarifies member voting requirements for credit union mergers, in order to maximize member participation; and
- Outlines procedures allowing members to communicate their support or opposition to a credit union merger.
The credit union modernization bill will go into effect one year after signing, in June 2012.
“In a legislative year with a historically split House, many new legislators, and the daunting task of balancing a tough budget, passing this bill is an impressive win,” added Stang.
The NWCUA will now work with the Department of Consumer and Business Services to develop any necessary interpretive rules relating to the bill.
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