House Bill 2161 has been introduced to update the State’s Credit Union Act. Included in the Bill are a provision allowing the expulsion of a member that creates undue risk of loss, the elimination of the requirement that the credit union’s board of directors meets 10 times a year (the minimum sill be established by the director), and changes the date for exercise by state credit unions of powers available to federal credit unions without director approval to January 1, 2017, from January 1, 2013.
The Bill as introduced: (NOTE: Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted. New sections are in boldfaced type.)
A BILL FOR AN ACT
Relating to credit unions; amending ORS 723.022, 723.156, 723.202 and 723.292.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 723.022 is amended to read:
723.022. (1) The articles of incorporation or the bylaws may be amended as provided in the bylaws. Amendments to the articles of incorporation or bylaws shall be submitted to the Director of the Department of Consumer and Business Services, together with a fee established by rule of the [Director of the Department of Consumer and Business Services, to the director, who shall approve or disapprove the amendments within 30 days] director.
(2) Amendments [shall become effective upon approval in writing by the director.] submitted to the director in accordance with subsection (1) of this section become effective 30 days after submission, unless the director, within that time, notifies the submitter in writing that the director either disapproves the amendments or requires submission of additional information. If the director requires submission of additional information, the amendments become effective 30 days after the date the information is submitted, unless the director disapproves the amendments within that time.
SECTION 2. ORS 723.202 is amended to read:
723.202. (1) Subject to subsection (2) of this section, a credit union may expel any member of the credit union who:
(a) Has not carried out the member’s engagements with the credit union;
(b) Creates an undue risk of loss to the credit union, as determined in accordance with the bylaws of the credit union;
[(b)] (c) Has been convicted of a criminal offense; [(c)] (d) Fails to comply with the provisions of this chapter or of the credit union’s articles, bylaws or policies; [(d)] (e) Threatens, harasses or abuses any member, employee, board or committee member or agent of the credit union; or [(e)] (f) Habitually neglects to pay the member’s debts or becomes insolvent or bankrupt.(2) A credit union that expels a member shall inform the member in writing of the reasons for the expulsion and give the expelled member reasonable opportunity to request the credit union’s board of directors to reinstate the member. Members of a credit union who withdraw or are expelled shall not be relieved of any liability to the credit union. The amounts paid in on shares or deposited by such members, together with any dividends credited to their shares and any interest which has accrued on their deposits, shall be repaid to them in the order of their withdrawal or expulsion, as funds become available therefor, but the credit union may deduct from such payments any sums due to the credit union from such members.
SECTION 3. ORS 723.292 is amended to read:
723.292. The board of directors of a credit union shall [meet at least 10 times, in 10 separate months, during each calendar year.] hold regular meetings. The Director of the Department of Consumer and Business Services may specify by rule the minimum frequency of meetings of the board of directors.
SECTION 4. ORS 723.156 is amended to read:
723.156. (1) Notwithstanding any other provision of law, in addition to the powers and authorities provided under the laws of this state, a credit union may exercise any of the powers that were available to a federal credit union as of January 1, [2013] 2017. At least 45 days before exercising a power under this subsection, a credit union shall provide to the Director of the Department of Consumer and Business Services written notice of the credit union’s intent to exercise the power. The notice must describe the power and specify the statutory or regulatory authority or other legal basis for the federal credit union power the credit union intends to exercise.
(2) Notwithstanding any other provision of law, in addition to the powers and authorities provided under the laws of this state, a credit union may, after obtaining approval from the director and subject to any limitations the director prescribes, exercise any of the powers conferred after January 1, [2013] 2017, upon a federal credit union that does business in this state and that is subject to the regulations of the administrator of the National Credit Union Administration or the successor or successors of the administrator, or any of the powers conferred on a credit union that is chartered under the laws of another state and does business in this state, if the director finds that exercising the powers:
(a) Serves the public and members’ convenience and advantage; and
(b) Equalizes and maintains the quality of competition among credit unions chartered under the laws of this state, of another state and under federal law.
