Oregon credit unions investing in CUSOs will be gaining higher loan limits – from 2% of assets to 5% – under a proposed code update bill making its way through the state legislature.

The Northwest Credit Union Association said eventual passage of the measure encompassing the CUSO investment change would align CUSO rules with limits in other Western states enabling Oregon CUs “to get more loans out the door.”

Pam Leavitt, Oregon legislative director for NWCUA, said the update bill which passed the state Senate Thursday on a 27-1 vote still must go through the House, with hearings and a vote scheduled before the sessions closes at the end of May.

“We are very pleased to move SB 177 out of the Oregon Senate with such strong bipartisan support,” Leavitt said. “We will be working very hard to get this bill scheduled in a House Committee as soon as possible.”

The bill, considered a housekeeping measure introduced every two years, also contains provisions that would allow more scheduling flexibility for boards of directors meetings.

The bill also exempts standard mortgage loans to directors or senior managers from the requirement for board approval, while adding additional safeguards. The updated bill also clarifies comment procedures on proposed mergers, the NCUA said.