Oregon Gov. John Kitzhaber has signed a bill that will update the state’s credit union act, including increasing the cap for lending to a single borrower.
The new provisions in the act, signed into law on Monday by the governor, will take effect on Jan. 1, 2014.
According to the Northwest Credit Union Association, the Oregon Credit Union Act will include the following new provisions:
- Broaden Oregon’s parity authority by allowing its credit unions to invoke parity with out-of-state credit unions and streamline the process for invoking parity with federally chartered credit unions.
- Clarify the role of the supervisory committee in governance-related matters.
- Extend additional liability protection to credit union directors and officers.
- Remove the wording in Oregon law that requires the board to “perform other duties as the members of the credit union from time to time direct and perform or authorize any action not inconsistent with this chapter and not specifically reserved by the bylaws for the members.”
- Remove language in Oregon law which permits a credit union to employ a chief operating officer/president and a security officer.
- Make the declaring of dividends a delegable power under Oregon law; and increase the loans to one borrower limit to the larger of $100,000 or 15% of a credit union’s equity.
Backed by NWCUA, the bill was the result of recommendations by the Oregon State Model Act Subcommittee chaired by Scott Burgess, president/CEO of the $569 million Rivermark Community Credit Union in Beaverton, Ore.
“The sub-committee put a tremendous amount of work and analysis into the legislation signed by the governor, and we’re very pleased with the outcome,” Burgess said in a league statement.
As the chairman of the sub-committee,” he said, :” I know I speak for the group in saying that we’re all particularly proud that, in Oregon, we routinely open up the Credit Union Act to seek out legislative changes that will help credit unions better serve their members in these challenging times.”