Oregon Gov. John Kitzhaber has signed a bill that will updatethe state's credit union act, including increasing the cap forlending to a single borrower.

The new provisions in the act, signed into law on Monday by thegovernor, will take effect on Jan. 1, 2014.

According to the Northwest Credit Union Association, theOregon Credit Union Act will include the following newprovisions:

• Broaden Oregon's parity authority by allowing its credit unionsto invoke parity with out-of-state credit unions and streamline theprocess for invoking parity with federally chartered creditunions.
• Clarify the role of the supervisory committee ingovernance-related matters.
• Extend additional liability protection to credit uniondirectors and officers.
• Remove the wording in Oregon law that requires the board to“perform other duties as the members of the credit union from timeto time direct and perform or authorize any action not inconsistentwith this chapter and not specifically reserved by the bylaws forthe members.”
• Remove language in Oregon law which permits a credit union toemploy a chief operating officer/president and a securityofficer.
• Make the declaring of dividends a delegable power under Oregonlaw; 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 bythe 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 analysisinto the legislation signed by the governor, and we're very pleasedwith the outcome,” Burgess said in a league statement.

As the chairman of the sub-committee,” he said, :” I know Ispeak for the group in saying that we're all particularly proudthat, in Oregon, we routinely open up the Credit Union Act to seekout legislative changes that will help credit unions better servetheir members in these challenging times.”