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An Act
ENROLLED SENATE
BILL NO. 1623 By: Daniels of the Senate
and
Lepak of the House
An Act relating to credit unions; amending 6 O.S.
2021, Sections 2001, 2001.1, 2006, 2007, and 2010,
which relate to definitions, the Oklahoma State
Credit Union Board, succession, membership, and the
board of directors; defining term; requiring powers
exercised by the Board to ensure certain competitive
charter; allowing certain credit union to make loans
to its members with certain flexibility; allowing
certain credit unions to invest certain shares,
stocks, or member units of certain companies under a
certain percentage of net worth of certain credit
union; prohibiting the Oklahoma State Credit Union
Board from considering certain overlap when
determining certain approval; allowing the Board to
permit certain credit union to add certain category
of association; allowing certain records to be filed
with the Bank Commissioner within a certain time
frame; allowing certain board of directors and
members to receive certain compensation; requiring
certain compensations to be disclosed annually in
certain report; updating statutory references; making
language gender neutral; updating statutory language;
and providing an effective date.
SUBJECT: Credit unions
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. S. B. NO. 1623 Page 2
SECTION 1. AMENDATORY 6 O.S. 2021, Section 2001, is
amended to read as follows:
Section 2001. As used in this chapter Section 2001 et seq. of
this title:
1. “Credit union” means a cooperative nonprofit society
incorporated for the purpose of promoting thrift among its members,
and creating a source of credit for them at legitimate rates of
interest for provident or productive purposes; and
2. “Credit union organization” means any organization that is
established primarily to serve the needs of credit unions and whose
business relates to the daily operations of the credit unions served
by such credit union organization;
3. “Paid-in and unimpaired capital and surplus” means, the
balance of all paid-in share accounts and other deposits, less any
loss for which no reserve has been established or which has not been
charged against undivided earnings, plus the credit balance (or, or
less the debit balance) balance, of undivided earnings, after all
losses have been provided for and net earnings or net losses have
been added thereto or deducted therefrom. Reserves shall not be
considered as a part of surplus; and
4. “Underserved areas” means the same as provided for in 12
U.S.C., Section 1759.
SECTION 2. AMENDATORY 6 O.S. 2021, Section 2001.1, is
amended to read as follows:
Section 2001.1. A. There is hereby created the Oklahoma State
Credit Union Board, which shall consist of five (5) members
appointed by the Governor. The State Bank Commissioner shall be one
of the members, and he or she shall preside as Chairman Chair of the
Oklahoma State Credit Union Board. One of the other four members
shall be a member of a credit union organized under the laws of this
state, and each of the other three members shall be the officer in
charge of operations or a director of a credit union organized under
the laws of this state; provided, however, one of those three may be
from a federal credit union. Said Such four members shall be
selected by the Governor, with advice and consent of the Senate,
ENR. S. B. NO. 1623 Page 3
from a list of not less than five (5) names for each member to be
appointed submitted by the Oklahoma Credit Union League. The
members appointed by the Governor shall serve for terms of four (4),
three (3), two (2) and one (1) year, respectively. Upon the
expiration of the terms of the four members previously appointed by
the Governor pursuant to the provisions of this section, their
successors shall be appointed for terms of four (4) years. If a
member of the Oklahoma State Credit Union Board ceases to hold the
qualifications required for the appointment of such member, then the
remaining members shall immediately declare the office of such
member vacant and such member shall cease to be a member of the
Oklahoma State Credit Union Board. Any vacancy in the membership of
the State Credit Union Board, caused by other than the expiration of
a term, shall be filled only for the balance of the term of the
member in whose position the vacancy occurs. Appointment made to
fill a vacancy shall be made by the Governor, with advice and
consent of the Senate, from a list of not less than five (5) names
submitted by the Oklahoma Credit Union League. Except as otherwise
provided in this section, members shall serve until their terms
expire or until their successors are appointed and qualified.
B. Each member of the State Credit Union Board shall be
entitled to be reimbursed for necessary travel expenses pursuant to
the State Travel Reimbursement Act.
C. The State Banking Department shall provide such clerical,
technical and legal assistance as the State Credit Union Board may
require.
D. Powers exercised by the Board may be executed in a manner to
ensure a competitive state credit union charter.
SECTION 3. AMENDATORY 6 O.S. 2021, Section 2006, is
amended to read as follows:
Section 2006. A credit union shall have succession in its
corporate name during its existence and shall have power:
1. To make contracts;
2. To sue and be sued;
ENR. S. B. NO. 1623 Page 4
3. To adopt and use a common seal and alter the same at
pleasure;
4. To purchase, lease, own, hold, and dispose of any real
estate, buildings, fixtures, equipment, furniture and furnishings
necessary, incidental and convenient to the operation of the credit
union, the aggregate book value of which shall not exceed seven
percent (7%) of the total assets of the credit union, unless
otherwise specifically approved by the Oklahoma State Credit Union
Board. A credit union may lease to any tenants as the credit union
deems appropriate any portion of the facilities or premises of the
credit union which are not utilized in the conduct of the business
of the credit union;
5. To make loans to its members for provident or productive
purposes with at least as much flexibility as permitted by federally
chartered credit unions so as to ensure a competitive state charter,
the maturities of which shall not exceed fifteen (15) years, except
as otherwise provided herein and except as otherwise approved by the
Oklahoma State Credit Union Board or the National Credit Union
Administration, and extend lines of credit to its members, to other
credit unions and to credit union organizations and to participate
with other credit unions, credit union organizations or financial
organizations in making loans to credit union members, other credit
unions and credit union organizations in accordance with the
following:
a. loans to credit union members shall be made in
conformity with criteria established by the board of
directors of the lending credit union; provided that:
(1) a real estate loan secured by a first mortgage
lien may have a maturity not exceeding thirty
(30) years or any longer term which may be
authorized by the Oklahoma State Credit Union
Board,
(2) a loan to finance a manufactured home, which
shall be secured by a first lien on such
manufactured home, or a second mortgage loan
secured by a dwelling, shall have a maturity not
exceeding fifteen (15) years or any longer term
ENR. S. B. NO. 1623 Page 5
which may be allowed by the Oklahoma State Credit
Union Board,
(3) a loan secured by the insurance or guarantee of,
or with advance commitment to purchase the loan
by, a state or federal governmental agency may be
made for the maturity and under the terms and
conditions specified in the state or federal law
under which such insurance, guarantee or
commitment is provided,
(4) a loan or aggregate of loans to a director or to
a member of the supervisory committee or the
credit committee or the credit manager of the
lending credit union which exceeds Sixty Thousand
Dollars ($60,000.00) plus the amount of any
pledged shares, shall be approved by the board of
directors of the lending credit union, and
(5) loans to credit union members for which any
director of the lending credit union or any
member of the supervisory committee or credit
committee or the credit manager of the lending
credit union acts as a guarantor or endorser
shall be approved by the board of directors of
the lending credit union when such loan, either
standing alone or when added to any outstanding
loan or loans of the guarantor or endorser,
exceeds Sixty Thousand Dollars ($60,000.00) plus
the amount of any pledged shares,
b. loans to credit union members and other eligible
borrowers shall be made in accordance with and shall
be paid or amortized in accordance with any rules or
regulations as may be prescribed and adopted from time
to time by the Oklahoma State Credit Union Board,
after taking into account the needs or conditions of
the borrowers, the amounts and duration of the loans,
the interests of the members and the credit unions and
such other factors as the Oklahoma State Credit Union
Board may deem relevant,
ENR. S. B. NO. 1623 Page 6
c. unless approval by the board of directors of the
lending credit union is otherwise expressly required
herein, loans to credit union members and other
eligible borrowers shall be approved by the credit
committee or by a loan officer of the lending credit
union in accordance with criteria established by the
board of directors,
d. no loan or line of credit may be made to or
established for a credit union member if the amount of
such loan or line of credit, when aggregated with all
other outstanding loans and lines of credit made to or
established for such credit union member, will cause
the credit union member to be indebted to the lending
credit union in an amount exceeding six percent (6%)
of the greater of either (i) the paid-in and
unimpaired capital and surplus of the lending credit
union or (ii) an amount which is six percent (6%) of
the total assets of the lending credit union,
e. a self-replenishing line of credit may be established
by a credit union for any eligible borrower to a
stated maximum amount on terms and conditions which
may differ from the terms and conditions established
for other eligible borrowers,
f. loans to other credit unions shall be approved by the
board of directors of the lending credit union and
shall not exceed twenty-five percent (25%) of the
paid-in and unimpaired capital and surplus of the
lending credit union,
g. loans to credit union organizations shall be approved
by the board of directors of the lending credit union
and shall not exceed one percent (1%) of the paid-in
and unimpaired capital and surplus of the lending
credit union, except as otherwise approved by the
Oklahoma State Credit Union Board. A “credit union
organization” means any organization which is
established primarily to serve the needs of credit
unions and whose business relates to the daily
ENR. S. B. NO. 1623 Page 7
operations of the credit unions served by such credit
union organization,
h. participation loans with other credit unions, credit
union organizations or other financial organizations
shall be in accordance with written policies adopted
by the board of directors of the lending credit union
and shall be approved by the board of directors of the
lending credit union. However, a credit union which
that originates a loan for which participation
arrangements are made in accordance with this
subsection shall retain an interest of at least ten
percent (10%) of the face amount of such loan,
i. a credit union may participate in any guaranteed loan
program of the federal government or of this state
under the terms and conditions specified in the laws
under which such program is provided,
j. a credit union may finance for any person, whether or
not such person is a member of the credit union, the
purchase from the credit union of any real or personal
property owned and held by the credit union, including
any property obtained by the credit union as a result
of defaults in obligations owed to the credit union,
and
k. a credit union may make loans to its officers and
directors and to members of its supervisory and credit
committees. However, such loans shall not be made on
terms more favorable than those extended to other
members of the credit union. A credit union may
permit officers, directors and members of its
supervisory and credit committees to act as co-makers,
guarantors or endorsers of loans to other credit union
members;
6. To receive from its members, and other credit unions, state
and federal, doing business in the United States of America,
payments on shares and deposits, and to require such notice for
withdrawal of shares and deposits as the bylaws may provide;
ENR. S. B. NO. 1623 Page 8
7. To amend its bylaws in the manner provided by the bylaws,
but all. All amendments to the bylaws must shall be submitted to
and approved by the Oklahoma State Credit Union Board before they
become operative;
8. To invest its funds in accordance with the following:
a. investments shall be made in conformity with criteria
established by the board of directors of the credit
union and in accordance with any rules or regulations
as may be prescribed and adopted from time to time by
the Oklahoma State Credit Union Board, and
b. the following investments shall be authorized for
credit unions:
(1) loans to credit union members and other loans
authorized for credit unions under the laws of
this state,
(2) obligations of the United States of America and
obligations fully guaranteed as to principal and
interest by any instrumentality or agency of the
United States of America,
(3) general obligations and revenue obligations of
any state or any political subdivision thereof;
provided, the aggregate of such investments shall
not exceed ten percent (10%) of the paid-in and
unimpaired capital and surplus of the credit
union; and provided that such investments shall
be limited to obligations rated among the three
highest rating categories established by one or
more national rating services for governmental
obligations,
(4) obligations issued by banks for cooperatives,
federal land banks, federal intermediate credit
banks, federal home loan banks, the Federal Home
Loan Bank Board or any corporation designated by
federal law as a wholly owned government
corporation, or obligations, participations or
ENR. S. B. NO. 1623 Page 9
other instruments of or issued by, or fully
guaranteed as to principal and interest by, the
Federal National Mortgage Association or the
Government National Mortgage Association, or in
mortgages, obligations or other securities which
are or ever have been sold by the Federal Home
Loan Mortgage Corporation pursuant to the Federal
Home Loan Mortgage Corporation Act, or in other
obligations or other instruments or securities of
the Student Loan Marketing Association, or
obligations, participations, securities or other
instruments of or issued by or fully guaranteed
as to principal and interest by any other agency
of the United States of America,
(5) shares of, deposits with or loans to other
federally insured credit unions in a total
amount, in either case, not exceeding twenty-five
percent (25%) of the paid-in and unimpaired
capital and surplus of the investing credit
union,
(6) shares of, or accounts or deposits with any state
or federal banks, mutual savings banks and
savings and loan associations, the accounts of
which are insured by an agency of the federal
government,
(7) shares of, deposits with or loans to any Federal
Reserve Bank or any central liquidity facility
established under state or federal law,
(8) shares of, deposits with or loans to any central
credit union or corporate credit union organized
under state or federal law,
(9) shares of, deposits with or loans to any
organization, corporation or association
providing services associated with the general
purposes of the investing credit union or
engaging in activities incidental to the
operations of any credit union; provided that
ENR. S. B. NO. 1623 Page 10
such investments in the aggregate may not exceed
one percent (1%) three percent (3%) of the
unimpaired capital and surplus of the investing
credit union,
(10) any obligations or securities authorized for
investment by federal credit unions under the
laws of the United States of America. However,
such Such investments shall be in compliance with
any restrictions or limitations pertaining
thereto under the laws of the United States of
America or under the regulations of the National
Credit Union Administration,
(11) money market funds rated among the three highest
rating categories established by one or more
national rating services for corporate or
governmental securities,
(12) shares of mutual funds if the investments and
investment transactions of the fund are
authorized for credit unions under the laws of
this state, or
(13) such other investments or types of investments as
may be authorized from time to time by the
Oklahoma State Credit Union Board; provided that
the Oklahoma State Credit Union Board shall not
be permitted under this specific grant of
authority to authorize a credit union to purchase
or own real estate solely for investment
purposes;
9. To make deposits in national banks and in state banks, trust
companies, savings and loan associations, and credit unions
organized under the laws of this state, any other state, or the
United States of America, operating in accordance with the laws of
the State of Oklahoma this state, or of the laws of the United
States of America and approved by the Oklahoma State Credit Union
Board as depositories;
ENR. S. B. NO. 1623 Page 11
10. To borrow, from any source, in an aggregate amount not
exceeding fifty percent (50%) of its shares, deposits and undivided
earnings; such borrowed money may be borrowed either by means of
bills payable or through rediscounts of its negotiable instruments,
and credit unions may pledge their assets as collateral securities
therefor;
11. To fine members, in accordance with the bylaws, for failure
to meet their obligations promptly to their credit union;
12. To impress and enforce a lien upon the shares, deposits,
dividends, and interest of any member to the extent of any loan made
to the member or endorsed by the member and any interest or fines
payable by the member;
13. To charge an entrance fee as provided in the bylaws;
14. To hire clerical help;
15. To become the owner and lessor of personal property upon
the specific request of and for the use of a member. A credit union
may only purchase the personal property to be leased after it has
completed a leasing arrangement with a member. Except upon the
written approval of the Bank Commissioner, the term of the lease
shall in no event exceed ten (10) years and all such leases shall
provide for the payment of regularly scheduled periodic payments,
the total of which shall at least equal the cost to the credit union
of the personal property so leased. The total investment by a
credit union for benefit of any member, combined with all other
obligations of such member to the credit union, shall at no time
exceed six percent (6%) of the greater of either (i) the paid-in and
unimpaired capital and surplus of the credit union or (ii) an amount
which is six percent (6%) of the total assets of the credit union;
and
16. To exercise such incidental powers as shall be necessary or
requisite to enable it to carry on effectively the business for
which it is incorporated.
SECTION 4. AMENDATORY 6 O.S. 2021, Section 2007, is
amended to read as follows:
ENR. S. B. NO. 1623 Page 12
Section 2007. A. Credit union membership shall consist of the
incorporators, and such other persons and incorporated and
unincorporated organizations and their employees, as may be elected
to membership. Each member shall subscribe to at least one share of
the credit union’s stock and pay the entrance fee. Credit union
membership shall be limited to groups having a common bond of
occupation or association, which shall be limited to one of the
following categories:
1. Groups that have the same common bond of occupation or
association;
2. Persons or organizations within a well-defined community,
neighborhood or rural district; or
3. Groups which have, as to each individual group, a common
bond of occupation or association, but, as to all such groups, need
not have the same common bond of occupation or association as other
groups within the credit union.
B. The Oklahoma State Credit Union Board may not consider
overlap in determining approval of a proposed field of membership
for a credit union chartered by this state.
C. The Board may permit a credit union chartered by this state
to add any category of association as is preapproved by the National
Credit Union Administration and may designate other preapproved
categories of associations or persons eligible for membership
including, but not limited to, persons with income at or below one
hundred fifty percent (150%) of the United States Department of
Health and Human Services Poverty Guidelines residing in underserved
areas.
D. A central credit union may be organized to which members of
existing credit unions operating in accordance with the law of the
State of Oklahoma this state, or of the United States of America,
may belong, and to which credit unions organized and operating under
the State of Oklahoma this state or of the United States of America
may also belong.
SECTION 5. AMENDATORY 6 O.S. 2021, Section 2010, is
amended to read as follows:
ENR. S. B. NO. 1623 Page 13
Section 2010. A. 1. The business affairs of a credit union
shall be managed by a board of not less than seven (7) members,
elected by the members of the credit union, from their number, at
their annual meeting, the organizational meeting being the first
annual meeting, and to hold office for such terms as the bylaws may
provide.
2. The bylaws of a credit union shall not prevent or restrict a
member from serving as a director, unless such member has been, or
is later, convicted of a crime involving dishonesty or breach of
trust.
3. A record of names and addresses of the board of directors
and the respective committees and officers shall be filed with the
Bank Commissioner within ten (10) days after their election. No
member of the board of directors shall, as such, be compensated, but
the officers elected by the board of directors and the members of
the credit and supervisory committees may receive such compensation
for services performed as the board shall, by resolution, authorize.
4. The board of directors shall meet at least once a month,
unless permitted by the Bank Commissioner to meet less often, and
shall have the general direction and control of the affairs of the
corporation. The minutes of all such meetings shall be kept. Among
other things they shall act upon applications for membership.
5. The board shall also:
a. declare dividends and determine rates of interest on
deposits,
b. fill vacancies in the board and in the credit
committee until successors elected at the next annual
meeting have qualified,
c. authorize investment of credit union funds other than
loans to members,
d. determine from time to time the maximum number of
shares and deposits that will be accepted from a
ENR. S. B. NO. 1623 Page 14
member in any calendar month not inconsistent with the
bylaws, and
e. subject to limitations of this act section and
Sections 2001.2, 2006, and 2013 of this title,
determine the interest rates on loans and the maximum
amount that may be loaned with and without security to
any member, and determine the rate of interest refund,
if any, to be made to members.
A majority of the board may, however, agree to exclude
loans made at rates of interest lower than the basic rate
of the credit union and may also exclude loans where
payments are in arrears from participation in such
interest rebates. All other loans shall participate at
the same rate of rebate.
6. The Oklahoma State Credit Union Board may, by approval of
implementing amendments to the bylaws of a credit union, authorize
the delegation of specific powers by the board of directors of the
credit union to an executive committee of the board of designated
officers of the credit union. However, the delegation of any power
by the board of directors, as authorized, shall not relieve the
board of any existing duty or obligation for the proper exercise of
the delegated power.
B. 1. At their first meeting, after the annual meeting of the
members, the directors shall elect from their number an executive
officer, who may be designated as chairman chair of the board or
president, a vice-chairman vice chair of the board or a vice-
president vice president, a secretary, and a treasurer, who shall be
the executive officers of the corporation. The secretary and the
treasurer may be the same person. The duties of the officers shall
be determined by the bylaws.
2. The board of directors may employ an officer in charge of
operations, whose title shall be either president and/or or general
manager or, in lieu thereof, the board of directors may designate
the treasurer or an assistant treasurer, to act as general manager
and be in active charge of the affairs of the credit union. Each
active officer and employee of a credit union shall, before entering
upon their duties, make and give a bond to the credit union,
ENR. S. B. NO. 1623 Page 15
executed by a surety company, in an amount fixed by the Oklahoma
State Credit Union Board, for the protection of the credit union
against the fraud or dishonesty of each active officer or employee
of the credit union. When the bond has been executed it shall be
filed with the Bank Commissioner.
3. The board of directors may appoint a membership officer and
delegate to the officer the power to approve or disapprove all
membership applications. The membership officer may not be the
treasurer or assistant treasurer. Once appointed, the membership
officer shall submit to the board of directors a list of approved or
pending applications for membership at each regular meeting of the
board of directors.
C. 1. A credit committee of not less than three members shall
be either elected by the members or appointed by the board of
directors, from the membership of the credit union, at the annual
meeting of the members, or at the first meeting of the board of
directors after the annual meeting of the members, as the bylaws may
provide. Members of the credit committee shall hold office for such
terms as specified in the bylaws. In lieu of a credit committee, a
credit manager may be appointed by the board of directors, if the
bylaws so provide. The credit manager shall be an officer of the
credit union.
2. A credit committee, or if the bylaws so provide, a credit
manager, shall have the general supervision of all loans to members.
It shall be the duty of the credit committee, or if applicable, the
credit manager, to provide for the review of all applications for
loans, to ascertain whether or not such loan would benefit the
applicant, and to determine whether or not the security offered, in
the judgment of the credit committee or the credit manager, is
sufficient and the terms proper. If the loans of the credit union
are supervised by a credit committee, the credit committee shall
meet as often as may be required after due notice has been given to
each member thereof, but not less than once a month, and shall keep
a record of all meetings.
3. The credit committee, or the credit manager, shall make a
report to the members at the annual meeting.
ENR. S. B. NO. 1623 Page 16
4. To facilitate the work of the credit committee or the credit
manager, the credit committee or the credit manager, whichever is
applicable, may appoint one or more loan officers and assistants, as
may be necessary. Loan officers shall act under the direction of
the credit committee or the credit manager and may approve or
disapprove loans, but only within written rules and regulations
established by the credit committee or the credit manager. A record
of loans approved by each loan officer shall be made available upon
request to the credit committee or the credit manager.
D. 1. The supervisory committee shall be appointed by the
board of directors unless otherwise provided in the bylaws. One
director may be appointed or elected to the supervisory committee,
but not the treasurer.
2. The supervisory committee shall make a semiannual
examination of the affairs of the credit union, including an audit
of its books; and shall make an annual audit and a report to be
submitted at the annual meeting of the corporation. However, if the
supervisory committee, with the approval of the board of directors,
employs an auditor approved by the Oklahoma State Credit Union
Board, a licensed public accountant or a certified public accountant
to perform an annual audit of the affairs and books of the credit
union, such annual audit by the outside auditor shall constitute
full compliance with this subsection.
3. A record of names and addresses of the board of directors
and the respective committee members and officers shall be filed
with the Commissioner within ten (10) days after their election.
The board of directors and the members of the credit and supervisory
committees may receive compensation for services performed as the
Board shall authorize by resolution. Such compensation shall be
disclosed annually to the membership as a part of the credit union’s
report.
4. The supervisory committee shall make a report of any audit
it causes to be conducted of the credit union at the annual meeting
of the credit union.
4. 5. By a unanimous vote, the supervisory committee may
suspend any officer of the corporation, including the credit
manager, or any member of the credit committee or of the board of
ENR. S. B. NO. 1623 Page 17
directors until the next members’ meeting, which meeting, however,
shall be held within fourteen (14) days of the suspension and at
which meeting the suspension shall be acted upon by the members;
and, by a majority vote, may call a special meeting of the
shareholders to consider any violation of this law, the charter, or
of the bylaws, or any practice of the corporation deemed by the
committee to be unsafe or unauthorized. The board of directors
shall fill vacancies on the supervisory committee.
5. 6. The supervisory committee shall in such manner as it
deems advisable cause the accounts of the members to be verified
with the records of the treasurer from time to time and not less
frequently than once every two (2) years.
6. 7. The supervisory committee shall meet as often as
necessary to conduct the business of the supervisory committee and
at such other times as the Commissioner may prescribe. Minutes of
all such meetings shall be kept.
7. 8. No member of the supervisory committee may be excluded
from attending the meetings of the board of directors of the credit
union.
SECTION 6. This act shall become effective November 1, 2026.
ENR. S. B. NO. 1623 Page 18
Passed the Senate the 26th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 29th day of April, 2026.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________