Oregon DCBS Approves Rulemaking on Minimum Number of Credit Union Board Meetings

Six regular meetings in a calendar year, with at least one per quarter, are required.

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1/22/2019

The Oregon Department of Consumer and Business Services (DCBS) adopted a final rule that updates OAR 441-710-0527 to define regular credit union board meetings and set the minimum number of meetings.

In the 2017 Oregon Legislative session, HB 2161 made changes to the Oregon Credit Union Act and contained a provision that would allow the DCBS to set the minimum number of credit union board meetings by rulemaking.

For the purposes of the updated rule, a “regular meeting” means a formal Board of Directors meeting held at definite intervals. A credit union’s Board of Directors will need to hold at least six regular meetings in a calendar year with at least one of the six regular meetings held each quarter.

Credit unions wishing to change their board meeting schedule will need to specify the number of regular meetings and frequency in their bylaws.

Question of the Week

Who may access a safe deposit box after the death of the member?

A credit union must exercise due care to prevent the opening of the safe deposit box by any person other than the renter, or his or her duly authorized agent. A duly authorized agent includes a personal representative, attorney in fact, special representative, or a trustee acting under a revocable living trust. Upon the death of an individual, a personal representative will be appointed to settle the estate. The court will determine the proper personal representative and issue letters testamentary to the appointed executors. An individual attempting to gain access to a safe deposit box of a deceased member should present letters testamentary stating they are the personal representative.

In addition, in Washington, ownership of the contents of a safety deposit box is not determined by any lease provisions creating a joint tenancy or transfer at one lessee’s death. For instance, a lease provision stating that two or more persons have access to the box, attempts to create a joint tenancy in the contents of the box, or attempts to vest ownership of the contents in the surviving lessee, is ineffective to create joint ownership of the contents or to transfer ownership at death of one lessee to the survivor. Ownership of the contents will be determined by rules of law without regard to lease provisions.

However, since the credit union does not know what contents are in the box and who owns said contents, the credit union does not need to deny access to any co-renter on the box.

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA Board has approved its annual performance plan, which outlines the strategies and indicators that the NCUA will use to improve performance and set priorities for achieving the agency’s mission and the goals of the agency’s strategic plan.

Consumer Financial Protection Bureau (CFPB)

The CFPB asks Congress for clear authority to supervise compliance with the Military Lending Act (MLA).

Oregon Department of Consumer and Business Services (DCBS)

The DCBS approved rulemaking, which defines a credit union’s “regular” board meetings and sets the minimum number of meetings.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Jan. 8, 2019. The last update prior to this was Dec. 19, 2018.

Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].